EXPLORING THE NON PROFIT SECTOR IN INDIA

SOME GLIMPSES FROM MAHARASHTRA

Prepared by PRIA amp Society for Socio-Economic Studies and Services in Collaboration with the Center for Civil Society Studies

J ohns Hopkins Univers ity USA

September 2003 Working Paper Number 10

Society for Participatory Research ill Asia (PNIA) 42 Tughlakabad Institutional Area

New Delhi - If() 062 Plume (9-01) 2995 69082995850826060933233

Fax (91-()II ) 2995 583 Email illfopriaorg Website wwwpriaorg

0 TE TS

Preface II - III

All Executive Summary IV

I The Context I - 2

n Socio-Eco nomic and Political Scenario 3 - 5

III Historical Background 6 - 14

IV Th e Legal Framework 15 - 22

V The Survey Instruments 23 - 33

VI The Surv ey Results 34 - 51

VD Lessons Learnt for Future Surveys 52 - 53

Annex I 5-1-55

Anne II 5()

References 57

Members olThe d i~I)() onuniucc 5X

PR IA Research middot cam

IIOr K INS Core Teal11

PREF CE

The Society for Participatory Research in Asia (PRIA) had been engaged since late 1998

in a rather voluminous exercise on mapping the nonprofit sector in Ind ia Th e exercise

aimed at generating sys tematically as much o f the information as was feas ible about the

sector which included the size scope areas o f interest sources of revenue expenditure

patterns etc The study was carried out at the behest of the Center for Ci vil Society

Studies (CC SS) at the Johns Hopkins University (JHU ) in the United States with the fond

hope that the information generated would help in deve loping a better understanding of the

role these organisa tions play in socia l and economic deve lop ment processes of the country

The data on the are being analysed in phases and a series of working papers are being

prepared under the overa ll guidance of an Adv isory Committee for wider dissemination of

the project output T he pre se nt paper is the tenth in the series

During the first year of the project the PR IA research team had undertake n an exhaustive

review of the secondary sources of data which included an examination of the em ployment

data generated by the National Sample Survey Organisation (NSSO) the national accounts

statistics and the Ec onomic Census the latter two brought out by the Ce ntral S tatistical

Organisation (CSO) It was found that the o fficial stat istics system had de - facto not

recognized at least till 1998 the non-profit sec tor as a separate ly identifiable entity Sporadic

attempts to collect informa tion on the sector were utterly inadequate since the term non shy

profit had not been even defined in some cases Indir ect es timates of the number of such

institutions and employment there - in could perhaps be derived from so me of the official

data hut their au thentic ity would be any body s guess s ince the estimates will have to be

based on several assumptions More importantly even such an exercise cou ld not give clue

on a large number of parameters of serious interest to the sector s planning need s such as

the size of the informal sector and activ ities of groups engaged in sub-sectors eg community

services and environment In this background the question of collecting pr imary data through

sample surveys co uld not be eschewed

The organisational surveys of non - pro fit institutio ns have never been attem pted before in

India Therefore the work is truly pioneering As it happens w ith all p ioneering efforts

there is bound to be scope for improvements in the approach and the methodologies used

for implementing the adopted approach It is commo n knowledge that the NGO leaders as

II

well the government plann ers make stat ements on vanous dimensions of the sector and the

sector s ca pabi lities based on their perceptions The reason for this is not difficult to

comprehend there is an utter lack of sc ientifically developed literature on the subject It is

hoped that the present re port is con sidered as pro viding more authent ic information than

available hitherto whic h can honestly be treat ed as benchmark es timates in various debates

We are grateful to the Inst itute for Pol icy Studies John s Hopk ins University in Baltimore

for inv iting PRIA to undertake the Study in India We gratefully acknowledge continuous

guidance of the core project team at the JHU and that of the Indian Ad visory Co mmittee

The overall leadership to the study has been ably provided by Dr S S Srivastava Principal

Researcher

T he field work for the main survey (s) was undertaken by Vaikunthbhai Mehta Research

Ce ntre Mumbai and co mputer processing of the collected pri mary data their tabulation and

analyses were undertaken by the Society for Socio-econom ic Studies and Services (SSESS)

a Kol kata based organisation Th e SSESS also und ertook ably the task of preparing the

draft report unde r the guidance of Shri S K Gu pta its Director

The JB U the Ford Foundation (New Delhi) the Aga Khan Foundation the Action Aid and

Sir Ratan Tata Tru st have supported the Study

Dr Rajesh Tand on

President PRIA

Se ptember 2003

111

A EXECUTI E ~ UII RY

The overall picture of non pro fit sector that emerges from the survey is as follow s shy

bull It is estimated that there were about R8 thousand act ive NPOs in the year [999-2000

About 60 of the NPOs were in rural areas and the remain ing 40 in urban areas

bull About 77 of the tota l NPOs were registered formal units and the rem aining 23 were

unregistered informal units

bull The total manpower engaged in the sector worked out at approximately I08 lakhs ( l m~ million)

persons comprising overwhelm ingly part -time unp aid vol unteers (8 2Ia khs) Full- time

volunteers were few (about 43 thou sand) and Paid em ployees were of the order of 22 Iakhs

mostly full-time

bull Religious org anizations (35) followed by Co mmu nity and Soc ial Wel fare Services(30)

and Educational Insti tut ions ( 14) do minate the Maharastra NPO scene

bull Co mmunity as a whole (34710)children ( 185) youth ( 16 2) in that order were found 10

be the main target groups on which the NPOs of Mah arastra focussed their attention and energies

bull Total funds rece ived by the sec tor in the yea r 1999-2000 wa s est ima ted at Rs 1055billions

(Rs 1055 crores)

bull The total foreign contri butions received during J99)-2000 amounted to about Rs3052 millions

(289 of the total fund s received)

bull Estimated lotal expenditures by NPOs in 1999-2000 was of the order ofRs 10 13 billions

bull Estimate d total value of assets in 1999-2000 was about Rs 50 64 billio ns

Th e sectors heterogeneity is vis ible both in terms of paid employ ment and vol ume of expenditure

There is pre-dominance of smaller units about 74 of total NPOs with none or one paid employee

Almost 80 of NPOs do not have an annua l budget of even Rs50OOO

I V

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

0 TE TS

Preface II - III

All Executive Summary IV

I The Context I - 2

n Socio-Eco nomic and Political Scenario 3 - 5

III Historical Background 6 - 14

IV Th e Legal Framework 15 - 22

V The Survey Instruments 23 - 33

VI The Surv ey Results 34 - 51

VD Lessons Learnt for Future Surveys 52 - 53

Annex I 5-1-55

Anne II 5()

References 57

Members olThe d i~I)() onuniucc 5X

PR IA Research middot cam

IIOr K INS Core Teal11

PREF CE

The Society for Participatory Research in Asia (PRIA) had been engaged since late 1998

in a rather voluminous exercise on mapping the nonprofit sector in Ind ia Th e exercise

aimed at generating sys tematically as much o f the information as was feas ible about the

sector which included the size scope areas o f interest sources of revenue expenditure

patterns etc The study was carried out at the behest of the Center for Ci vil Society

Studies (CC SS) at the Johns Hopkins University (JHU ) in the United States with the fond

hope that the information generated would help in deve loping a better understanding of the

role these organisa tions play in socia l and economic deve lop ment processes of the country

The data on the are being analysed in phases and a series of working papers are being

prepared under the overa ll guidance of an Adv isory Committee for wider dissemination of

the project output T he pre se nt paper is the tenth in the series

During the first year of the project the PR IA research team had undertake n an exhaustive

review of the secondary sources of data which included an examination of the em ployment

data generated by the National Sample Survey Organisation (NSSO) the national accounts

statistics and the Ec onomic Census the latter two brought out by the Ce ntral S tatistical

Organisation (CSO) It was found that the o fficial stat istics system had de - facto not

recognized at least till 1998 the non-profit sec tor as a separate ly identifiable entity Sporadic

attempts to collect informa tion on the sector were utterly inadequate since the term non shy

profit had not been even defined in some cases Indir ect es timates of the number of such

institutions and employment there - in could perhaps be derived from so me of the official

data hut their au thentic ity would be any body s guess s ince the estimates will have to be

based on several assumptions More importantly even such an exercise cou ld not give clue

on a large number of parameters of serious interest to the sector s planning need s such as

the size of the informal sector and activ ities of groups engaged in sub-sectors eg community

services and environment In this background the question of collecting pr imary data through

sample surveys co uld not be eschewed

The organisational surveys of non - pro fit institutio ns have never been attem pted before in

India Therefore the work is truly pioneering As it happens w ith all p ioneering efforts

there is bound to be scope for improvements in the approach and the methodologies used

for implementing the adopted approach It is commo n knowledge that the NGO leaders as

II

well the government plann ers make stat ements on vanous dimensions of the sector and the

sector s ca pabi lities based on their perceptions The reason for this is not difficult to

comprehend there is an utter lack of sc ientifically developed literature on the subject It is

hoped that the present re port is con sidered as pro viding more authent ic information than

available hitherto whic h can honestly be treat ed as benchmark es timates in various debates

We are grateful to the Inst itute for Pol icy Studies John s Hopk ins University in Baltimore

for inv iting PRIA to undertake the Study in India We gratefully acknowledge continuous

guidance of the core project team at the JHU and that of the Indian Ad visory Co mmittee

The overall leadership to the study has been ably provided by Dr S S Srivastava Principal

Researcher

T he field work for the main survey (s) was undertaken by Vaikunthbhai Mehta Research

Ce ntre Mumbai and co mputer processing of the collected pri mary data their tabulation and

analyses were undertaken by the Society for Socio-econom ic Studies and Services (SSESS)

a Kol kata based organisation Th e SSESS also und ertook ably the task of preparing the

draft report unde r the guidance of Shri S K Gu pta its Director

The JB U the Ford Foundation (New Delhi) the Aga Khan Foundation the Action Aid and

Sir Ratan Tata Tru st have supported the Study

Dr Rajesh Tand on

President PRIA

Se ptember 2003

111

A EXECUTI E ~ UII RY

The overall picture of non pro fit sector that emerges from the survey is as follow s shy

bull It is estimated that there were about R8 thousand act ive NPOs in the year [999-2000

About 60 of the NPOs were in rural areas and the remain ing 40 in urban areas

bull About 77 of the tota l NPOs were registered formal units and the rem aining 23 were

unregistered informal units

bull The total manpower engaged in the sector worked out at approximately I08 lakhs ( l m~ million)

persons comprising overwhelm ingly part -time unp aid vol unteers (8 2Ia khs) Full- time

volunteers were few (about 43 thou sand) and Paid em ployees were of the order of 22 Iakhs

mostly full-time

bull Religious org anizations (35) followed by Co mmu nity and Soc ial Wel fare Services(30)

and Educational Insti tut ions ( 14) do minate the Maharastra NPO scene

bull Co mmunity as a whole (34710)children ( 185) youth ( 16 2) in that order were found 10

be the main target groups on which the NPOs of Mah arastra focussed their attention and energies

bull Total funds rece ived by the sec tor in the yea r 1999-2000 wa s est ima ted at Rs 1055billions

(Rs 1055 crores)

bull The total foreign contri butions received during J99)-2000 amounted to about Rs3052 millions

(289 of the total fund s received)

bull Estimated lotal expenditures by NPOs in 1999-2000 was of the order ofRs 10 13 billions

bull Estimate d total value of assets in 1999-2000 was about Rs 50 64 billio ns

Th e sectors heterogeneity is vis ible both in terms of paid employ ment and vol ume of expenditure

There is pre-dominance of smaller units about 74 of total NPOs with none or one paid employee

Almost 80 of NPOs do not have an annua l budget of even Rs50OOO

I V

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

PREF CE

The Society for Participatory Research in Asia (PRIA) had been engaged since late 1998

in a rather voluminous exercise on mapping the nonprofit sector in Ind ia Th e exercise

aimed at generating sys tematically as much o f the information as was feas ible about the

sector which included the size scope areas o f interest sources of revenue expenditure

patterns etc The study was carried out at the behest of the Center for Ci vil Society

Studies (CC SS) at the Johns Hopkins University (JHU ) in the United States with the fond

hope that the information generated would help in deve loping a better understanding of the

role these organisa tions play in socia l and economic deve lop ment processes of the country

The data on the are being analysed in phases and a series of working papers are being

prepared under the overa ll guidance of an Adv isory Committee for wider dissemination of

the project output T he pre se nt paper is the tenth in the series

During the first year of the project the PR IA research team had undertake n an exhaustive

review of the secondary sources of data which included an examination of the em ployment

data generated by the National Sample Survey Organisation (NSSO) the national accounts

statistics and the Ec onomic Census the latter two brought out by the Ce ntral S tatistical

Organisation (CSO) It was found that the o fficial stat istics system had de - facto not

recognized at least till 1998 the non-profit sec tor as a separate ly identifiable entity Sporadic

attempts to collect informa tion on the sector were utterly inadequate since the term non shy

profit had not been even defined in some cases Indir ect es timates of the number of such

institutions and employment there - in could perhaps be derived from so me of the official

data hut their au thentic ity would be any body s guess s ince the estimates will have to be

based on several assumptions More importantly even such an exercise cou ld not give clue

on a large number of parameters of serious interest to the sector s planning need s such as

the size of the informal sector and activ ities of groups engaged in sub-sectors eg community

services and environment In this background the question of collecting pr imary data through

sample surveys co uld not be eschewed

The organisational surveys of non - pro fit institutio ns have never been attem pted before in

India Therefore the work is truly pioneering As it happens w ith all p ioneering efforts

there is bound to be scope for improvements in the approach and the methodologies used

for implementing the adopted approach It is commo n knowledge that the NGO leaders as

II

well the government plann ers make stat ements on vanous dimensions of the sector and the

sector s ca pabi lities based on their perceptions The reason for this is not difficult to

comprehend there is an utter lack of sc ientifically developed literature on the subject It is

hoped that the present re port is con sidered as pro viding more authent ic information than

available hitherto whic h can honestly be treat ed as benchmark es timates in various debates

We are grateful to the Inst itute for Pol icy Studies John s Hopk ins University in Baltimore

for inv iting PRIA to undertake the Study in India We gratefully acknowledge continuous

guidance of the core project team at the JHU and that of the Indian Ad visory Co mmittee

The overall leadership to the study has been ably provided by Dr S S Srivastava Principal

Researcher

T he field work for the main survey (s) was undertaken by Vaikunthbhai Mehta Research

Ce ntre Mumbai and co mputer processing of the collected pri mary data their tabulation and

analyses were undertaken by the Society for Socio-econom ic Studies and Services (SSESS)

a Kol kata based organisation Th e SSESS also und ertook ably the task of preparing the

draft report unde r the guidance of Shri S K Gu pta its Director

The JB U the Ford Foundation (New Delhi) the Aga Khan Foundation the Action Aid and

Sir Ratan Tata Tru st have supported the Study

Dr Rajesh Tand on

President PRIA

Se ptember 2003

111

A EXECUTI E ~ UII RY

The overall picture of non pro fit sector that emerges from the survey is as follow s shy

bull It is estimated that there were about R8 thousand act ive NPOs in the year [999-2000

About 60 of the NPOs were in rural areas and the remain ing 40 in urban areas

bull About 77 of the tota l NPOs were registered formal units and the rem aining 23 were

unregistered informal units

bull The total manpower engaged in the sector worked out at approximately I08 lakhs ( l m~ million)

persons comprising overwhelm ingly part -time unp aid vol unteers (8 2Ia khs) Full- time

volunteers were few (about 43 thou sand) and Paid em ployees were of the order of 22 Iakhs

mostly full-time

bull Religious org anizations (35) followed by Co mmu nity and Soc ial Wel fare Services(30)

and Educational Insti tut ions ( 14) do minate the Maharastra NPO scene

bull Co mmunity as a whole (34710)children ( 185) youth ( 16 2) in that order were found 10

be the main target groups on which the NPOs of Mah arastra focussed their attention and energies

bull Total funds rece ived by the sec tor in the yea r 1999-2000 wa s est ima ted at Rs 1055billions

(Rs 1055 crores)

bull The total foreign contri butions received during J99)-2000 amounted to about Rs3052 millions

(289 of the total fund s received)

bull Estimated lotal expenditures by NPOs in 1999-2000 was of the order ofRs 10 13 billions

bull Estimate d total value of assets in 1999-2000 was about Rs 50 64 billio ns

Th e sectors heterogeneity is vis ible both in terms of paid employ ment and vol ume of expenditure

There is pre-dominance of smaller units about 74 of total NPOs with none or one paid employee

Almost 80 of NPOs do not have an annua l budget of even Rs50OOO

I V

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

well the government plann ers make stat ements on vanous dimensions of the sector and the

sector s ca pabi lities based on their perceptions The reason for this is not difficult to

comprehend there is an utter lack of sc ientifically developed literature on the subject It is

hoped that the present re port is con sidered as pro viding more authent ic information than

available hitherto whic h can honestly be treat ed as benchmark es timates in various debates

We are grateful to the Inst itute for Pol icy Studies John s Hopk ins University in Baltimore

for inv iting PRIA to undertake the Study in India We gratefully acknowledge continuous

guidance of the core project team at the JHU and that of the Indian Ad visory Co mmittee

The overall leadership to the study has been ably provided by Dr S S Srivastava Principal

Researcher

T he field work for the main survey (s) was undertaken by Vaikunthbhai Mehta Research

Ce ntre Mumbai and co mputer processing of the collected pri mary data their tabulation and

analyses were undertaken by the Society for Socio-econom ic Studies and Services (SSESS)

a Kol kata based organisation Th e SSESS also und ertook ably the task of preparing the

draft report unde r the guidance of Shri S K Gu pta its Director

The JB U the Ford Foundation (New Delhi) the Aga Khan Foundation the Action Aid and

Sir Ratan Tata Tru st have supported the Study

Dr Rajesh Tand on

President PRIA

Se ptember 2003

111

A EXECUTI E ~ UII RY

The overall picture of non pro fit sector that emerges from the survey is as follow s shy

bull It is estimated that there were about R8 thousand act ive NPOs in the year [999-2000

About 60 of the NPOs were in rural areas and the remain ing 40 in urban areas

bull About 77 of the tota l NPOs were registered formal units and the rem aining 23 were

unregistered informal units

bull The total manpower engaged in the sector worked out at approximately I08 lakhs ( l m~ million)

persons comprising overwhelm ingly part -time unp aid vol unteers (8 2Ia khs) Full- time

volunteers were few (about 43 thou sand) and Paid em ployees were of the order of 22 Iakhs

mostly full-time

bull Religious org anizations (35) followed by Co mmu nity and Soc ial Wel fare Services(30)

and Educational Insti tut ions ( 14) do minate the Maharastra NPO scene

bull Co mmunity as a whole (34710)children ( 185) youth ( 16 2) in that order were found 10

be the main target groups on which the NPOs of Mah arastra focussed their attention and energies

bull Total funds rece ived by the sec tor in the yea r 1999-2000 wa s est ima ted at Rs 1055billions

(Rs 1055 crores)

bull The total foreign contri butions received during J99)-2000 amounted to about Rs3052 millions

(289 of the total fund s received)

bull Estimated lotal expenditures by NPOs in 1999-2000 was of the order ofRs 10 13 billions

bull Estimate d total value of assets in 1999-2000 was about Rs 50 64 billio ns

Th e sectors heterogeneity is vis ible both in terms of paid employ ment and vol ume of expenditure

There is pre-dominance of smaller units about 74 of total NPOs with none or one paid employee

Almost 80 of NPOs do not have an annua l budget of even Rs50OOO

I V

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

A EXECUTI E ~ UII RY

The overall picture of non pro fit sector that emerges from the survey is as follow s shy

bull It is estimated that there were about R8 thousand act ive NPOs in the year [999-2000

About 60 of the NPOs were in rural areas and the remain ing 40 in urban areas

bull About 77 of the tota l NPOs were registered formal units and the rem aining 23 were

unregistered informal units

bull The total manpower engaged in the sector worked out at approximately I08 lakhs ( l m~ million)

persons comprising overwhelm ingly part -time unp aid vol unteers (8 2Ia khs) Full- time

volunteers were few (about 43 thou sand) and Paid em ployees were of the order of 22 Iakhs

mostly full-time

bull Religious org anizations (35) followed by Co mmu nity and Soc ial Wel fare Services(30)

and Educational Insti tut ions ( 14) do minate the Maharastra NPO scene

bull Co mmunity as a whole (34710)children ( 185) youth ( 16 2) in that order were found 10

be the main target groups on which the NPOs of Mah arastra focussed their attention and energies

bull Total funds rece ived by the sec tor in the yea r 1999-2000 wa s est ima ted at Rs 1055billions

(Rs 1055 crores)

bull The total foreign contri butions received during J99)-2000 amounted to about Rs3052 millions

(289 of the total fund s received)

bull Estimated lotal expenditures by NPOs in 1999-2000 was of the order ofRs 10 13 billions

bull Estimate d total value of assets in 1999-2000 was about Rs 50 64 billio ns

Th e sectors heterogeneity is vis ible both in terms of paid employ ment and vol ume of expenditure

There is pre-dominance of smaller units about 74 of total NPOs with none or one paid employee

Almost 80 of NPOs do not have an annua l budget of even Rs50OOO

I V

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

EXPLORING THE NON PRom SECTOR IN INDIA Some Glimpses from Maharashtra

I THE CONTE T

No n-G o vern me nt and non -profit d istributing organisatio ns ha ve be en maki ng

significa nt contribution towards soc ia l and economic development in Indi a These Institutions

are known by d iffe rent na mes in the co untry namel y Voluntary an d Com munity ba sed

Organi sations Sel f-help g roups Soc iet ies Associat ion s C lubs e tc depen di ng on the areas

of ac tiv ities they ar e involve d in Desp ite a rapid g ro w th in their num be rs and area of

operatio ns particularly d uri ng the pos t- ind -pendence period very little informati o n seems

to be av a ilab le re la ting to the s tru cture o f this se ctor its c urre nt contributio n to the

national ec o no my and capabilities to play an important ro le in soc ia l and econ omic

de velopment of the co untry A s imila r phen ome non is be ing w itnessed almost across the

globe

As far back as In 1990 the Johns Hopk ins Uni vers ity (JHU) la unc hed a

Co mparative No n-Prof it Sec to r Proj ec t (C N PS) with the objec tiv e s o f delineating the

definitio na l boundaries of the sec tor and to devel op s ys tematica lly as mu ch of the

informatio n base abo ut the sec tor as wa s feasib le Initi a lly the proj ec t was underta ke n in

eight developed co untries vi z France Ge rmany Hungary Italy Japan the UK and the

US A Gradu a lly less de ve lo ped count ries we re al so roped in and by the ye ar 1995

so me 22 countr ies had be en bro ugh t w ith in the ambit of the proj ec t India j o ine d the

project in 1998

The Socie ty fo r Partic ipatory Re search in Asia (PRIA ) at the behest of the Cente r

for Civil Society S tudi es (CCSS ) at the JHU in the United S ta tes ha s launched the

proj ect in Ind ia in tw o pa rts an e mpi rica l part e nv isag ing building up s ta tis tica l ba se to

measure the ke y d imens io ns o f the sec to r and a no n-e m pi r ica l part envi sagmg an

understanding of the interplay be tween stake ho lders d iscussio ns on how to ev o lve polic ies

for the se ctor and re lated q ues tio ns For the empirica l pa rt o f the study in the firs t

instance a detailed ex am ination of the related secondary dat a available from various sources

particularly was done of the ma cro-econo mic data series genera ted by the National Sample

Survey O rganisa tio n (NSSO ) an d the Ce ntral Statisti cal O rgan isa tio n (C50) The res ult s

of th is e xam ina tio n ha s been summari zed in the pape r De fin ing the Sec tor in Ind ia ]

(PRJA 2000) The exa mination clea rly ind icate d that the secondary sources did not provide

informatio n o f re lev ance to a s tudy of non -profit sec tor ill India In-fact the offic ia l

statis tica l syste m had never atte mpted to col lect information on the sector Ho we ver the

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

Government machiner y has of late sta rted address ing th is Issue In this background it

was considered necessary to collect primary data through statistically designed sample

surveys

Originally JHU CNPS project envisaged building up all- India es timates considering

the cou ntry as a single entity from wh ich a random sample of pr imary unit s could be

draw n and surv eyed But later based on twin cons iderations of States being im portant

administrati ve units for governance in the country and pre sence of wide inter State

disparities in socio-economic and cultural backgrounds conducti ng state wise surveys were

performed Sin ce it was simply imp ossible for an organisation like PRI A to co nduct

sam ple surveys in all the States of India on balan ce of considerations it was decided to

select one Sta te each fro m all the four comers of the country plus one State with special

features and population characteristics Accordingly the surveys were orga nised in five

states of Ind ia viz West Bengal Maharashtra Delhi Ta mil Nadu and Meghalaya Th e

first four states are represe ntatives of four regions of the country and Meghalaya is a

relatively small state with mountainous terrain wi th significant ly d iffere nt reli gious and

ethnic co mposition of its population

No government or non-government agency has ever conducted a statistically designed

sample survey co vering solely the non-profit sector and in that sense the current exercise

und ertaken by PRIA is trul y pion eering in nature content and context All sur vey

instruments were de veloped based on the guidelines issued by JH U and keeping in view

the methodologies adopted by NSS O for their socio-economic surveys Based a ll the pilot

surveys conducted in Uttar Pradesh and Tamil Nadu in 2000 the approach an d the

instru ments of the ma in survey were finalised The Main surv ey in Maharashtra was

conducted during the second hal f of 200 I

This Working Paper summarises the findings of the survey of non-profit organisations

in the State of Ma harashtra Althou gh the actual da ta collect ion wor k was done from

June to December 200 I the results relate to the referen ce year 2000 (1999- 2000 for

some variables)

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

II SOCIO-ECONO Il l 0 POLITI CAL SeE RI )

Located in the weste rn part of the cou ntry the present Sta te of M aharashtra was

c reated in May 1960 ou t of the t -rritories of former Bo mbay s ta te Madhya Prad esh

and Andhra P radesh Cul tural ly and soc ia lly as we ll as econo m ical ly Ma ha ras htra is

known as one of the mos t adv anced States of the coun try The basic soc io-economic and

demographic fea tures o f the St ate arc de scribed bri efly in the fol lowi ng paragraphs

Mahurush tra has a total land area of 3077 13 sq uare ki lomete rs wh ic h IS abo ut

one-tenth of the country s total land area Ac cording tu 200 I Populati on Census

Mahur ashtra s po pula tio n is 96 8 mi lli o n whi ch wo rks ou t to ab o ut 9 4 per-ce nt 0 1 the

co unt ry s populatio n In terms of popu lation size it is the second larges t state in Ind ia

nex t to Uttar Pradesh Altho ugh the population density of Maharus htra has increased fro m

257 persons per sq uare kilometer in 191) 1 to 314 persons per sq km in 200 I it is sti ll

slightly lower than the av erage density for the coun try as a whole As per 199 1 Censu s

Maharash tra was the most urbanized state in Ind ia hu t accordi ng to 200 I Census wi th

42 pe rcen t of ur ban populati o n it lost its pos itio n to Tamil Nadu with 44 perce nt or

urban popu lat ion

Economically Maharasht ra is one o f the mos t deve loped sta tes in Ind ia The per

capita ne t sta te domes tic produc t at current prices was Rs 2J 398 during 1999-20 00 as

compared to Rs10067 fo r the coun try as a wh o le At co nstant prices (199 3-94) the pe rshy

capita state income increased from Rs 12602 in 1994-95 to Rs1 62l 7 in 1998-99 Durin g

the ye ar 1998-99 the share of pr imary sec onda ry and te rtiary se c to rs in the to ta l state

income was about 1831 and 5 I per-cent respect ively ind icating larger dependency o f the

sta te ec onomy o n secondary and tert iary sectors as compared to p rimary ie agri cu ltural

sec tor As per lat es t av a ilab le data (Sou rce Handbook o] Bas ic Statistics) Maharasht ru

is the lead ing most Sta te in the cou ntry with regard to ind us tr ia l ac tiv ity having 28941)

registe red fac tories w ith employment of 1302 thousan d and industrial o utput o r 15153 7

crores Average pe r-capita month ly consumpt ion expenditure in 11)91)-2000 (Source NS SO

55T H Roun d (I u ly 99 to June 20(0 ) was estima ted as Rs4968 in rura l areas and

Rs 97J 3 in ur ban a rea s as compared to all-Ind ia averages o f Rs 486 1 an d Rs 8550

respe ct ive ly

M aha rasht ru occup ies the second posiuon among the 13 major States nex t to

Kera la in terms o f two key social ind icators viz lite rac y and in fant mortality T he literacy

ra te for males has increased from 49 percent in 196 1 to 86 pe rcent 200 I the female

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

li te racy rate d uring thi s period has gone up from 20 percent La 68 percent T he ove rall

literacy rat e in 200 I in Maharashtra worked out to 77 percent as compar ed to 9 1

perce nt in Kerala (O ffice of the Regi strar General and Census Com mission er200 I) In

1999 the infant morta lity ra te for M aharashtru was 48 deat hs pe r tho usand an d liv e

births as against 14 deaths in Kcrala (O ffice o f the Regist rar General 20 0 I) M aharashtra

is also one of the lead ing States in succ essfully implementing famil y planning programm es

br inging down the to ta l fert ility rat e fro m 4 6 children pe r wo man in 197 1 to 27 in

1997 (Source Sa mple Registration Scheme of the Office of the Re gistrar General India)

S ince Independen ce and particul arly after the creation of the Maharashtra St ate there has

been significa nt progress in the State in almost all sec tors o f soc ial and economic activity

Table 21 presents currently av ail able da ta on some key soc io-economic c harac teristics

incl uding on variables commented up on in the prec ed ing paragraphs

Table 2 I Demographic and socio-economic profile of Mahurashtra

Characteristics A ll India

(I) (2) (3) (4)

I Population 2001 96752247 (2) 1027 015 247 2 Density of Population (per Sq Km ) 200 1 3 14 (9) 324 3 Per Capita net State domestic 1999-2000 23398 ( I) 10067

product at current prices 4 Literacy Rate (00) 200 1 77 27 (2) 65 20 5 Literacy Rate - Female ( ~) 200 1 6751 (2) 5420 6 MPCE (Rs) Rural 1999-2000 4968 (8) 4R6 1

Urban 9733 (I ) 855 0 7 Birth Rate ( pe r 000 pop) 1999-2000 211 ( 1999) II 258 8 Death Rate (per 000 pop) 1999-2000 75 ( 1999) 85 9 Infant Mortality Rate 1999-2000 48 68 (2000)

( per 000 life Birth) 10 Human Development Index 200 1 0523 0472 II Expectation of Life at Birth 1996-0 I Male - 653

Female - 681 607 (1995-96 ) 12 Cereal Production (000 to tons) 1999-2000 104188 (8) 195525 13 Gross Output 1998 151537 78 2421

EX-factory value (Rs Crores) 14 Working Population ( ) 2001 4346 (2) 39 19

[main + marginal] 15 Working factories 1998 28 949 255837 16 ~ of villages electrified 1999-2000 100 (I) 863 17 School attendance 1993-94 781 (4 ) 633

(5-14 yrs) per 000 (ru ra l)

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

Note Figures in bracket s in column(3 ) an ran kings with respec t to maj or states of India MPCE stands for Monthly Per Capita Consumption Expen diture 1 C urrent ranking no t avai lable

Sources (i) Item s ( I) (2) (4) (5) amp ( 14) fro m Direc to r o f Ce nsus Oper ation s Maharas htra (2002) Census o f India 200 I

(ii) Item (6) from Nation al Sa mple Surve y Organi sat ion (2002) Rep ort on 551h Round ( 1999-2000)

(iii) Item (12) from Ce ntra l S tatistica l Organi sa tion (2000) S tatistica l Abstract Indi a 2000

(iv) Item ( J6) from Central E lectrici ty A uthority

(v) Item (l 7) from Re port No 41 2 Economic Activit y and School Attendance by child ren o f India - NSSO 50 lh Round 1993 -94

(vi) Item s (7) (8 ) (9 ) amp ( I I) from Nat ion al Family He al th Survey Report Mahara shtra-1998-99

(vii) Item (3) from Ministry of Finance Govt of India (20 01 -2002) Econo mic Su rvey

(viii) Item s (7) to (9) of col umn(4) from SRS Bullet in Volume 36 No 1 Offi ce of the Regi strar Ge nera l Indi a

(ix) Items ( (3 ) amp ( 15) from handbook of basic statist ics o f Mah ara sht ra state 1999

(x) Item (10) fro m Nationa l Hu man De velopment Re port 200 I Planning Co mmission Go vernment o f India

Politically SInce independence the er stwhile Bombay Slate reorganized as M aharashtra

from 1960 had been most ly under the Congress rul e excep t for a br ief period between

141h M arch 65 to I October 99 when BJP (Bharatya Janat a Party) in co alition with

S hivsena came to power Th e po sition got reversed again in Oc tober 99 when congress

came back to power but this time in coa lition wi th NCP (National Congress Pa rty a

sp linter gro up of the mai n Congress party) For adminis trati ve purposes the State IS

divided into 35 districts Murnbai the ca pital city is ma inly an urban district Rural areas

account for 57 6 percent of the total population of Maharashtra State

CD

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

III HISTORIC L 8 CKGROU D

Non-Profit Sector ami Non-Profit Organisat ions are relat ive ly new terms in the Indian

co ntext T he sec tor may be considered as inter- linked with voluntary ac tion roots of

which can be traced to philan thropy and rel igions ob ligations enjoined on individua ls to

help the needy Rel igious inj unction s and codes of social conduct enjoining the citizens to

ca re for the weak and the needy had been s ince distant past graduall y transforming from

indi vidual efforts to group or commun ity ac tions and la ter also gett ing organ ized into

formal insti tutional structures T his phenomenon has been witnessed in the cou ntry as a

whole and more so in the state of Maharashtra

The histor y growth and changing nature of the Non-Profit Sec tor in Maharasht ra

has been examined in this chapter by div idi ng the total time-span into three phases the

pre-colonial phase (from Be to late e ighteenth ce ntury) the co lonial phase (from late

eighteenth ce ntury to 1947 ) and the post independence phase (1947 till to date)

PRE - OLO I L PI-IA ~ E

Volunteerism is an integral part o f the Indian Society as a whol e and da tes back to 1500

Be In this co ntext Ma harashtrian soc iety was no exception From that ti me onwards till

the adven t of British in India respo nsibil ity for welfare activities and social serv ice was

broadly the responsibility o f the State The kings and ruler s used to take care of indigenous

cu lture and arts rec reation ed uc ation health etc To a lesser extent but significa ntly

some religious ins titutio ns along with thei r ma in objective of prop agating their reli gious

thoughts and buildi ng places of worship also side by side constructed Dharmashalas as

shelte rs for pi lgrims and Gurukuls for imparting education Other social and charitable

activ ities generally remained individualistic and unorganized at best carried by small groups

or within a limi ted tribe sect or community

Pat ronisa tio n of State for so c ial and cultural deve lopment during ancient times IS

amply evidenced in Maharashtra Aj anta Caves and Ellora (Kailash Cave Temple)

built under the patronage of the then Rul ers VIZ Vaka ta kas (A D 250-525) and

Rastrakutas (AD 75 3-973) not only rev eal Fresco Paint ing at its high est level but also

p rovide ample evidence o f soc ial and cu ltura l dev elopment of Maharashtra duri ng thei r

rule In this context Huen Tsangs (Chineese Traveller) words abou t the then Mah arashtra

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

du ring his vi s it to Ind ia in AD 640-641 arc perti ne nt The so il is rich and fert iIe an d

it is regularly cu lt ivated and produc ti ve Me n are fond of learn ing and s tudying here tical

and orthodox books The dispos itio n of th e peopl e IS hones t an d simple If they are asked

to he lp on e in distress they w ill forget the msel ves in the ir haste to render assi s tance

The antiquity of thi s reg ion can be traced to a ppro xi ma tel y the 3d century Be w h ich

is when the Maharashtri langu age a Pra krit co rru pt io n or Sanskrit from wh ich the term

Maharashtra is de rived was then in us c Marathi wh ich evo lved from Maharas htri-Prakrit

has been the lin g ua franca o r the people or thi s area fr o m the lO Century onw ards and

in the course of time the te rm M aharas htra was de sc r ibed to des c ribe a regi on which

consi sted of A paranta Vid arbha Mulak As hmak and Kuntal

T he first signif icant form of so mewhat organized coope ra tive acnvity 111 the field s of

educa tion relig ious adm inis tra tio n charity co ns tructio n work 10 1 pub lic util ity was carr ied

out by a se c t within Hi ndus cal led Gosains Th is sec t was found to be ac tive all over

India bui lding thousands o f te mp les and mo na st eries Maharashtra Be rar and Hyderab ad

are the provinces most ric h in Gosain monasteries temples and ghats (river beds con structed

for public use) In the ci ty of Poona more th an 40 Hindu Monas ter ies were co unted

around in 18 18 T he Mahan t (custod ian) o r Kalyan Giri monastery was famous for his

charity from Ban aras to Ramcshwar He also bu ilt many Dha rm asa las (free rest-h o uses)

for pilgrims and made large donat ions repa iring old temples T he free distri buti on of food

to the poor by Poe na Gosa in s was co nsi dered on e o f the wo nders in the past [Jad unath

Sarkar 1959]

The emergence of Buddhism (arou nd 600 BC) also to some ext nt provid ed a new

approach of orga nized vo luntee rism and soc ial service Although Buddhism ori ginated from

the no rthern part of Ind ia in du e course or time it spread e ffective ly in the cen tra l and

we st ern Ind ia Voluntee rs prepared to re nou nce the world and stay in Sanghas Mathas

were rec ruited and tra ined as M onksVikshus These vo lun tee rs besides ministering to the

sp iritua l needs o f the peo ple were a lso asked to be engage d in rend ering service to the

poor and needy [Warde r 19701 Side by s ide Jainism wh ich a ltho ugh ori g inated in preshy

historic days ev en before the advent of Aryan s nut got pro m inence arou nd 600 BC al so

came to Weste rn an d Sou thern Ind ia from its birth place in Bihar T he ir last T irtha nkar

(S p iritu al leade r) M ahav ir a la id greate r stress on soc ia l reforms educa tion an d welfare

ac tivities than mere relig ious di scou rses and preaching There are acco unt or rel igiou s

o rganisa tions or S ra mana s engaged 111 char ita ble and welfa re acti vi ties an d of bui lding

hospitals in Jain Literature [Jagadi sh Jain 1947] In Guj ara t and Maharasht ra Jai nis m

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

was patronized by the mercantile community Alon g with their co mmercial activity Jain

comm unity In these areas est ablished a number o f chari tabl e organisations for the benefit

of general masses spec ially poor

Towards the end of pre-colonia l phase around the beginning of the thirteent h cen tury

with the reg ion of M uslim kin gs wh ich spread all over the country a not able change

occurred in the style and functioning of the state administration Wh ereas at the national

and provincial levels Kings Na wabs and Subedars took the direct responsibility of social

and ec onomic deve lopment through buiIding mosques madrasas highways bridges

Sarais (Motels) and so on they also patroni zed and encouraged form ation of local groups

fo r the prom otion of art culture architecture and artisanship During this period on one

hand trad itional cultural and folk-dance teams nam ely Lavani or Tamasha gro ups in

Maharashtra and Garba-groups in Guj arat started gett ing reorganized and re-activated

while on the other new guilds of archite cts and art isa ns were formed and started playing

a pro minent part in the life o f the commun ity [Walk er 1983J

As the Musl im emp ire and Islam started spreading all over the co untry and Hindus

began to feel insecure and pushed to the wall in western Ind ia M arathwada - a

Mara thi nation wi th a s trong Maratha power came into existence Maratha saints

nam ely G uru Ramdas Tuka Ram E kna th and Na mdeva exhorted the Ma rath as to

fig ht in the defence of their territory and re ligion These saints preached brotherhood of

mankind den ounced the caste-system whi ch had divided the Hindu soc iety and brought

un ity amongst Marathas They went on to write and sing in the language of masses and

thereby fostered the gro wth of a forceful Marathi language and literature which became

the common so urce of inspiration to all Marathi speaking peopl e Thus through social

reforms and community of language and c reed the Marathas came to have a nat ional

feeling The Maratha Chiefs wh ile working under the M uslim Sultans of the Deccan had

acqui red ample training in the art of war and administration This stood them in good

stead in the art of war and administration This stood them in good ste ad when they had

to fig ht with the Sultans of Bijapur and Golcounda and later on with the Mu ghal

Emperors The charismatic personality of Shivaji wielded tog ethe r the scattered elements

of the Marath a nat ion and instilled in them a spirit of patriotism and a burning desire

for sav ing Hi nduism from the onslaughts of Islam Shivaj] (1627-1680) became the deshy

facto rule r of a large kingdom in Maharashtra and wa s coronated in 1674 and assumed

the title of Chhatrapati Shivaj i was a born leader of mankind and proved himse lf a great

general as well as an able administrator His administrati on was efficient and enl ightened

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

There is no dou bt that Shi vaj is re -cnu c adm inistrati on di sp layed an honest desire to

pro mote the welfare of the cu ltivators He was noted for his scrupulous care for wo men

and chi ldren irrespecti ve of cas te creed or reli gion Altho ugh Shivaji s life was mostly

spe nt in figh ting wa rs and bu ildin g and ma intaini ng forts to co nsolidate Ma ratha pow er

he encouraged saints re ligious leaders and enlightened personaliti es to promote works of

art culture and literature This led to formation of a num ber of grou ps performing folkshy

dances dramas and music and development of literary soc ieties for which Maharash tra is

still well known [Jad unath Sarkar 1973 1

COLO I L PHASE

Christian ity and the col on ial rule s brought in the modern notions of vo lunteerism and

philanthrophy The formal-organisa tio nal fo rm of vo luntccrisrn had its origin in the phase

of Portuguese and British rule Like Buddhism Christian ity too created an order of monks

vowed to the service o f God thro ugh the service of hum an beings Dur ing the co lonial

phase development o f the non-profit sector throughout Ind ia incl ud ing Maharashtra is

c losely linked with the soc ia l reform and freedom movement [PR lA200 I] T he soc ial

reform movem ent of 19th century Muharushtra was the result of the impact of Western

education on the el ite of Mu mba i and Pune Re formists tried to examine critica lly their

soc ial sys tem and religious be liefs and ga ve prio rity to soc ia l reform as against po litical

freedo m Foremost among them were Balshastri lambhekar (1812- 184h) who condemned

the evi l customs of sati and female infant icide Gop al Hari Deshrnukh ( 1823-18 92) who

through his Shata patrc (a bu nch of 100 letters) attacked orthodox Brah mans oppos ing

soc ial and reli gious reforms and Jyotirao G nvindrao Phule ( 1827- 1890) who revo lted

against the unj us t caste system and upheld the cause of un touchab les and education of

wo men of lower castes in part icular Jyot irao Phu lc established Sa tya Shodh ak Samaj

with a gro up o f enthusiastic dedi cated volunteers Som e of the pioneering activities of this

Sa rn a] under his leadership co ns isted of Establ ishm ent of sch ool s for g irls and

untou cha bles ac tive par tic ipat ion in ce lebrating remarriages of wid ows es tablishmen t of

orphanages promoting adult educa tion through awareness programmes and crea ting night

sc hoo ls for the purpose collecting donations fro m members and non -members for givmg

studentships and sc hoolsh ips to poor non-Brahman stude nts and fina lly to publish use ful

information in period icals and newspapers for the up lift rucnt of the no n-Brahman whi ch

cre ated greater aw are ness for the re naissance [ Gall Omved i19741

Another orga nisation nam ely Prarthana Samaj was set lip during the same period

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

by Ramkrishna Gopal Bhandarkar and Justice Mahadeo Govind Ranade for gen eral

social and rel igiou s reform Behramji Malbari (1853-1912) a Parsi o f M um bai started

Seva Sadan for the care o f wo men of all cas tes Pandita Ramabai ( 1858-1922)

founded the Sharada Sadan to he lp widows Vithal Ramaji Shinde (1873-1944) fought

for the eradication of untouchabi lity through his Depressed Classes Mission Chhatrapati

Shahu Maharaj of Kolh apur (J 874- 1922) also plunged into this movement and championed

the cause of the un tou chab les and pro moted educa tion in his state Karmaveer Bhaurao

Paigonda Patil (1887- 1959) architect of the Rayat Shikshan Sanstha foll ow ed the

footprints of Phule and Shahu Mu haraj Maharashtra wi ll alw ays be proud of Dr Bhimrao

Ramraj Amhedkar ( 1891- 1956) the creato r o f a social and pol itical awearcncss among

the scheduled castes o f Indi a The social refo rm measures bro ugh t about a rena issa nce

and social aw akening in Mah ara sh tra He went on to orga nize Societiesllnstitution s with

the downtrodden on one ha nd to vo ice their griev ances while on the othe r to help

themse lves to de velop and jo in the mainstream o f the natio n Arnbedkar co ntinued his

mo vement even after the independence so much so that he was entrus ted with the work

of drafting the Ind ian Constit utio n and the nation as a whole will always remember him

as the Chief Architect of countrys Co nstitution Additionally Maharashtra and as a matter

of fact the entire country is indebted to Dr Punjabrao Deshmukh Tarabai Modak and

Anutai Wagh who championed the cause of the dow ntrodden peopl e and Adi vasis in

general Th e services rendered to vict ims of lep rocy by Dr Shivaji Patwardhan and

Babu Arnte perhaps ha ve no parall ed Vijay Merchant fou ght re lentles sly fo r fac ilities

for the physically handicapped Vinoba Bhave the spiritual hei r of Gandhi sacrificed his

life for Sarvodaya All these persona litie s although star ted their work during the British

rule co ntinued the ir e ffort s with greater vigour even after independence without passing

the responsibi lity to the State

Side by side with social re forms Maharashtra also played am importan t role in the

freedom mo vement The first session of the Ind ian National Congress wa s held in

Maharashtra (Mumbai) in 1885 l us tice Ranad e provided a theoretical ba se for the

nat ional movemen t by adv ocating liberalism and starting several inst itutio ns for moulding

public opinion on social economic and political problems Dadabhoy Naoroj i Pherozshah

Mehta and Dinshaw Wanchha prom inent Parsis of Mu rnbai and leaders of the Ind ian

National Congress contributed a go od deal for the soc ial and po litical movement by

org anizing the elite and mercantile groups to come forward and join the mo vement Two

outstanding leaders of M aharashtra we re Bal Gangadhar Tilak (L856-1920) and Gopal

Krishna Gokhale (1866-19 15) Tilak draw the masses into na tiona l politics through his

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

community festival s in praise of Shivaji and G anesh Gok hale the true d isc iple of Jus tice

Ranade adopted the po licy of conc ilia tion and com pro m ise Vinaya k Damod ar Savarkar

the founder of Abh inav Bharat Society became th e ido l of youth M ahatma Gandhi

considered M aharashtra the heehive of construct ive workers The ult ima tum to the Br itish

to Q uit India was gi ven in M umbai w hich culminated in the transfer of power and the

independence of Indi a in 1947

Along with organised soci a l re form and independ ence mo vement Maha rashtra did

not lag be hind to ins titutia lise othe r soc ia l cu lt ura l and sports ac tiv it ies D uring the

colonial period a nu m be r o f C lubs A ssociations Socie ties Academies N atya Sansthas

and Fo lk Art and Dance Groups were es tab lished w hich cintinue to func tion pro minently

even to-day Additionall y Maharashtra ha s been pe rhaps the lead ing most S tate in the

country in institutionalizing social po lit ical cultural and sports ac tivities duri ng the co lonia l

period

POST I DEPE DEN E PH SE

Wi th the inde pendence of the co untr y in 1947 the no n-profit sector acti vity In

Maharashtra init ia lly go t a se t-bac k due to attention of their leaders ge tt ing di verted to

political movement for creatio n of the lingu istic St ate of M aharashtra w ith M ara th i as

the State langu age iAt the outset in 1947 the tri-ling ual B o mbay State was formed

Although the Indi an Nat io na l Cong ress the ruling party was pledged to lingu istic States

but the States Re-o rg anisation Comrniuee recom me nd ed bi- ling ua l S tate fo r Maharashtrashy

Guj arat with M um bai as its ca pita l Its Inauguration on N o vember l 1956 cau sed a

great po litical stir and under the leaders hip of Keshavrao Jedha an all party meeting was

held in Pune an d Samyukta Maharashtra Samiti was fou nded on Fe brua ry 6 )956 S

M Josh i S A Dange N G Go re and PK A tre fo ught relentlessly for S amyukta

M aharashtra even at the cos t of sac r if ic ing the lives of seve ral people and f ina lly

su cceeded and o n M ay I 1960 the State of Maharashtra w h ich incl uded west ern

Maharashtra Vidarbha and M aharat hwada was bo rn w ith the blessings of Pandi t Jawaharlal

Nehru

With the creation of a separate Maharashtra S tate w ith Marathi as the State language

normalcy return ed ba c k gradually and the S tate re ve rted back to econo m ic and social

including industrial and rura l develo p ment program mes As desc ribed in earlier sec tio ns

M aharas htra ha s a rich he ritage of mo veme nts launch d an d organisations formed by

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

social re formers and leaders like M ahatma Phule Maharshi Karve Karmaveer Bhaurao

Patil and Dr Ambedkar T hese organisations which a ltho ugh co ntinued to pursue their

original programmes had to to ne down the ir activ ities cons ide rably duri ng the postshy

independence pe riod in view o f int ense and vio lent po litica l ac tivities related to creation

of a separate Maharashtra Imm ed iately a fte r the crea tion of the se parate state the

programmes were rev ised with greater vigour but with modified age nda as the situation

dem anded Another tendency whi ch was a litt le distu rbing to note was the appearance of

somewhat po litical regiona l and facti on al colour in the agenda of er stwh ile social

organisations as well as in the newly created groups and associations D ur ing the postshy

independence period in India as a whole including Maharashtra Cen tral as we ll as State

Governments started initiating sponsoring and patroni zing socio-economic development and

we lfare programmes and wa nted existing as wel l as new institutions in the non-profit

sector to partic ipate in all such activ ities On e notable feature in Maharash tra has been

the patronage and support for soc ial-welfare work by big indus trial and commercial houses

and the corporate sector as a whole th rou gh sma ller co mmunity groups and Associations

Gradually from late eighties and onwards non-profit organisations which had started growing

in numbers went on to me llow dow n their political and fact ional agenda and concentrate

on socio-economic development oriented welfare programmes Maharashtra s reputation to

be one of the most ec onomica lly soc ia lly and cu lturally advanced States thus continues

to be maintained Before en ding some notable ex amples to indi cate the di version and

revival in the age nda of ac tivities of the non -p rofit institutions in Maharasht ra during the

post-independence period are ind icated as foll ows shy

)gt Dalit Movement bull Dalit Panther Group Dr Ambedkar launched antishy

intouc hability mov em en t (Dal it M ovement) III ] 920 s in M aharashtra for

advance ment of the untouchables through the use of political means to achieve

soci al and economic equality with the higher classes in a modern society Th is

mo vement has co ntinued in di ffer ent forms till today Initially Dr Ambedkar s

ap proach was organizing mass-movements through smaller groups of Volunteers

which ultimate ly led to formation of the Scheduled Castes Federation in

1954 to fight for election Ambedkar s ap proach basically was political to fight

for the rights of untouchabl esmiddot but th rough pea ceful means with educat ional

advanceme nt soc ial reforms and awareness programmes However an unexpected

overturn of ideas took place amongst Ambedkar s foll owers whe n in 1972 a

young mi litant gro up of young educated Buddhist fo rmed the Dalit Panther

Group and Party Dalit Panther movement was the result of conscious efforts

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

on the part of the deprived to nuugate the ir deprivati on secure justice and

demonstrate thei r powers Gradually with the attainment of most of the ir political

de mands attention go t diverted to education literacy activities and work of art

and culture T he Dali t sc hools of lit erature represent a new level of pri de

militan cy and so phis ticated c rea tiv ity Dalit Sahitya had ac h ieved the sta tus

of a ge nuine sc hoo l of lit erature by 1969 The Ti mes Week ly Suppleme nt of

25 1h November 1973 co ntained the firs t signifi cant analys is of Dali t literature

in Engli sh Dalit wo men in M umbai organise d the Datit Stri Samwadini

(D ali t women s D ia logue) in 1996 probably the fir st womens literacy

co nfe rence in M aharashtra A Dali t ar t exhibition was held in Na gpur in

co nnectio n w ith the Asmitadarsh Literacy Conference in 1979 and an allshy

In dia art conference was called in I-I yderabad in 1987 [Jayashree Go khale

1979J an d [E leanor Ze ll io t 1983]

~ Narmada Bachao Andolan (NBA) NBA is a mass mo vement launch ed by

wo men of Ma harashtra Gujarat an d Madhya Prad esh led by MsMedha Patkar

agains t the ill-effects namely dis placeme nt and violation of livelihood of peopl e

and degr ad ation of land wa ter an d fo rest recources of the construc tion of the

dam nam ed Sardar Sarovar Project NBA demonstrate s the success of non -violent

strugg les co mbined with voluntary e fforts to undertak e socio -economic welfare

measures by the wo men for the women

raquo Family Welfare Programmes in Maharashtra T he G ove rn me nt of

Maharashtra launch ed its fami ly we lfar e pro grammes in a big way in 1957

wh ich were decentralized and handed over to Zi lla Parishads in 1967

Maharashtra has achieved ma ny na tional awards for the excellent performan ce

of its fam ily pl anning programme for wh ich the non -profi t institutions have

pl ayed an im portant role As a ma tter of fact it am ply proves the succe ss of

combined efforts of State and Pri vate NOll-Profit Sector The pioneeri ng work in

the field of health and fan lily welfare was started well before independence by

Prof RD Karve who started a birth control clinic as early as 1921 Shakuntala

Paranjape continued his work with greater enthusiasm formi ng Volunteer - Groups

for campaig ning and promot ing family we lfare progra mm es [ Repor t on

NFHS-2-M aharashtra 2000 1 Today Maharash tra is one of the leading most

states w ith non-profit orga nisa tions working in thi s fie ld

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

~ Rural Development through CD Programmes A lth o ugh Com munity

Develop ment (CD) Programmes implemented duri ng the post-independence period

in the co untry as a whole includi ng Maharushtra were bas icall y financed by

the Government and implem ented throu gh Panch ayat Raj system under the

guidance of Bloc k De velo pment O fficer and his sta ff ye t people s part icipation

and coope ration with principal responsibility to be taken by peopl e themselv es

was conside red to be the most important element of the programmes In most

of the d istricts of Maharashtra evaluation studies indi cated that CD program mes

had ge nerally succeeded and that se lf-help groups Voluntary Organisati ons and

Cooperative Societies played a very important ro le in ach ieving the targets set

by the programmes

[ S D Punek ar amp Al ka Golwalker1 97 I

~ Corporate Sector s Role in Social Welfa re A number of big indust rial and

co mmerc ial houses in M aharash tra ha ve been pa tronizing and co nt ribut ing

sign ificantly towards soc ial and cultural dev elopment of the State T hese efforts

got a boos t s ince independence While carrying ou t these activitie s they have

formed Societies funded and run by themselves created Foundations to fun d

non-profit institutio ns to he managed by themse lves Voluntary ac tivities in

Maharash tra particu larly in Edu cation Health Arts and Culture and Sp orts

sec tors throu gh the encouragement of the Corporate Bodies hav e ce rtainly go t

a fill ip during the post -independence period

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

I THE LEGAL FR IE ORK

In Maha rashtra like o ther states there arc legal provisions which permit groups to

commence non-prof it vo luntary or charitab le work to organize themselves into a legal

body by registering them selv es under a spec ified Act or a combinat ion of Acts Majority

of such units in Maharashtra hav e fo und it convenient and advantageo us to ge t reg istered

unde r one or more Ac ts particularly because such leg al backing is helpful in obtaining

sponsorsh ips and financ ial sup port from the Gov ernment and other nation alinternat ion al

agen cies However there are also a sizable number of unit s who for some reason or tbe

other have preferred to re main outs ide the legal frame-work but are car ryi ng out the ir

activities regularly and normally For that matter there is no compu lsion for an y nonshy

profi t institution to ge t leg ally registered Non-profit organizations in Maharash tra can be

reg isteredincorpo ra ted under any of the following Aet sshy

a) The Bo mbay Pub lic Trus ts Act 1950

b) Soc ieties Registration Act 1860 with Mah arashtra Rules 1971

c) Section 25 o f the Ind ian Com pan ies Act 1956

d) T he Maharashrra Cooperative So ciet ies Act 1960

e) T he Trade Union Act 1904

THE BOMBAY P BLIC TRUST T 1950

Well before Independence Trusts of different nature with varied objectives had been crea ted

in the country which had been regulated by Rel igious Endow ment Act 1863 Indian

Trus t Act 1882 Th e Charitabl e and Rel igious Trus t Act 1920 Mu ssalman Wakf Act

1923 and many o ther suc h Ac ts With a v iew to bring all Trus ts under one um brella

and to regulate and administer them efficiently in the Bombay State The Bombay Public

Trusts Act 1950 was promulgated with the follow in g objec tive

T he obj ecti ve of the Act is to regu late and make bett er prov isions of the administra tion

of public re ligious and charitable trus ts within the St ate o f Maharas htra It includes

within its scope all pub lic tru sts created not merel y for religiou s but for purely charitable

pu rposes as well and extends to people of all cl asses and den ominatio ns in the St ate

T he word trust has bee n defined to mean an obligation annexed to the ownership of

property and aris ing out of a confidence reposed in and accepted by the owner or

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

declare d and accepted by him for the ben efit of anothe r or of another and the owner

T here are two types of tru st In a private trus t the be neficia ries are one or more

ascertainable ind ividua ls In a publi c trust the benefi ciaries arc a body o f uncertain or

f luctuation individ uals and any may consist of a class of the publ ic or the whole public

Generally a pr ivate trust is not a permanent onc But a public tru st is of a pe rmanent

nature If properties are ded icated to temple s and mosques or gifts arc made to religious

or charitable ins titutions they create a trust Private tru sts will no t be cons idered in the

context of non-pro fit sector study

For the purpose of this Act a charitable purpo se includes re lief o f po verty or

distress education med ical relief provision for facil ities for recreati on or other leisure

time occupat ion (inc lud ing assi stance for such provision) if the faci lities are provided in

the interest of social welfare and publ ic benefit and advanceme nt of any other object of

general public util ity T he Government of Maharashtra for adm inistra tive purposes has

formed a number of region s and sub-regions with Public Trusts Registration Offices as

required The Ac t with e ffect from the date of promulgatio n makes it obligatory on the

existing pu blic tru sts and trusts to be newl y created to apply and get registered as per

section 18 of the Ac t which states

Registration of publi c trusts shy

( I) It sh all be the duty o f the trustee of a pub lic trus t to which thi s Ac t has been

applied to make an application for the registration of the publ ic tru st

(2) Such applicat ion sh all be made to the Deputy or Ass ist ant Charity Com missioner

of the region or sub-region within the limi ts of which the trustee has an office for

the ad ministration of the trust [or the tru st property or substantial portion of the

trust property is situ ated as the case may be 1

(3) Su ch application sh all be 111 writing shall be in such form and accompanied by

such fee as may be prescribed

(4) Su ch ap plicat io n sha ll shy

(a) in the case of a public trust created afte r th is Act was applied to it be

made wi thin three mon ths fro m the date of the applica tion of thi s Act and

(b) in case o f a public trust created after this Act comes into force within

three mo nths of its creat ion

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

(5) Such appli catio n sha ll inter alia con tain the fo llow ing part icu lars

(a) the de signation by whic h the publ ic tru st is or sha ll be known (h ere ina fte r

re fe rred to as the name of the pub lic trus t)

(i) the names and addresses o f the trustees and the manager

(ii) the mode of succession pound0 the offi ce of th e tru s tee

(iii ) the lis t of movea ble and immovable trus t propert y and su ch

desc riptio ns and particulars as may be sufficient for the ide ntificatio n

thereof

(iv) the approxi mate value o f movea ble and im movab le property

(v) the gro ss average ann ua l income of the trust property es tima ted o n

the income of three yea rs immcdiately preced ing the date on whic h

the ap pl ica tion is ma de or of the period whi ch has e lap sed since the

c reatio n of the trust wh ichever period is shorter

(vi ) the amount of the average annual ex pendi ture 111 connecti o n with

su ch pu hli c tru s t es timated or the expenditure inc urre d w ithi n the

period to wh ich th e particula rs under c lause (v) relate

(v ii) the add ress to which any co m municatio n to the tr us tee or manager

in conn c tio n w ith the public trus t may be sent

(viii) suc h o ther parti culars which ma y he pr escribed

Prov ided tha t the rules may pro vi de that in th e case 01 any or a ll publ ic tru s ts

it shall not be necessary to give the pa rticulars o f the trust property of such value

and suc h kind as may be spec ified the re in

(6) Eve ry applica tio n made under s ub -section ( I) sha ll be s igned and verified in the

prescr ibe d manner by the trustee or h is age nt spec ia lly authorised by him in thi s

beha lf It s hall be accompan ied by a copy or an instrume nt of trus t if such

inst rument had be e n exec uted and is in existence

(7) It sha ll a lso be the d uty of the trustee of the pub lic trust to send memorandum

in the prescribed for m co ntaining the parti culars includi ng the name and descriptio n

of the public trus t rel at ing to the immovable property of suc h publi c tru s t Such

me mo ra ndum sha ll be se nt w ithin thr ee months from the date o f c rea tio n o f the

public tru s t and shall be signed and veri fied in the prescribed man ne r by the

tru st ee or h is ag en t spec ia lly authorised by him in this behal f

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

The Act has made specific prov rstons 111 Sections 3 lA 32 33 and 36 B for

maintaining accounts by the trusts which are of great relev ance for the Non- profit

Institutions which are su mmarized as below

Preparation and subm iss ion in prescribed forms at least one month before the

accou nting year a budget showing the probable rece ipt s and dis bursements of

the trust dur ing the foll ow ing yea r to the Comm issioner Dy or Asstt

Commissioner

Maintenance of annual accounts in prescribed forms and su bmission of accounts

duly audited by a Ch ar tered Ac co untant withi n six months o f closing date of

accounts to the CommissionerDepu ty or As sistant Co mmiss ioner

Ma intenance of a reg ister o f movahle and immova ble properties

With a view to regulate and make better provis ion for the ad min istration of public

trusts Section 37 of the Act gives wide powers to the Au thorities to exerci se pro per

supervrs ion and co ntrol over the pu bl ic trusts as ind ica ted below

(a) to enter on and inspect or cause to be entered on and inspected any property

be longing to a pu blic trus t

(b) to call for and inspect any proceedings of the tr ust ee s of any public trust

and any book of acc ounts or docu ments in the po ssession or under the

co ntro l o f the trustees or any person co nnec ted with the trust

(c) to ca ll for any return sta tement acc ount or report which he may th ink fit

from the tru stees or any pe rson connected with a pu blic trust

(d) to get the ex planation of the trustee or an y person connected with the

pu blic tru st and re duce or cause to be red uced to writing any statement

made by him

SO IETIES REfISTRATION CT 1860 amp M HARASHTR RULES 1971

Non-profit sector societi es 111 Maha rash tra co ntinue to be regulated by Societies

Registration Act 1860 but with The Soc ieties Re gistra tion (Maharashtra) Rules 197 1

T hese ru les indicate the areas an d the ir lim its cove red by the Act in M aha rashtra and

specifies certain add itiona l annual returns to be submitt ed by the Governi ng Body and

el aborates the procedure of maintenance o f acco unts and the manne r of audit to be

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

carried out by the Society Any seven or mo re persons form ing a society for the foll owing

purposes may by subscribing the ir names to a memorandum of association and filing the

same with the Ass istant Registrar o f Soc ieties of the area be registered und er the 1860

Act

(i) Charitabl e as sistance

(ii) M ili tary orphan funds

(iii) Societies established at the Genera l Pres iden c ies of India

(iv) Societies established for promotion of

)gt Science

gt- Literat ure Fine Art s

gt- Instru cti on or di ffusio n of use ful kno wledge

gt- Di ffusion of pol itical ed ucation

Foundat ion or maint enan ce of librar ies or

gt- Public museum and ga lleri es of pai ntings

gt- Works of art

gt Collection of natural histo ry

gt Mechanical and philosophical invention s

gt Instruments

Designs

The Memorandum of Association should co ntai n

(i) The name and ad dress of the So c iety

(ii) The names

to it

(iii) The objects

(iv) The names

Commit tee

management

addresses and occupatio n of the

of the Society

reading roo ms

those members subscribing

add resses and occupation of the Governors Counci l Directors

or other governing body to whom the rul es of the Soc iety

of its affa irs is en trusted

(v) T he na mes addresses an d occupation o f the seve n or more person s

subscri bing the ir names to a memorandum of assoc iation Such persons

signa tures sho uld be duly w itnessed an d at tested

In addition to the memorandum of association it is ma ndato ry for a Society to file

a se t of govern ing rules and regu lations with the Registrar of Societies Apart from the

details as spell ed out in the memorandum the rul es and regulations must contain the

following

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

a) T he manner criteria and procedures for enrol lin g and re mo v ing

variouscategor ies of members

b) Th e rights obligations and length of membership for the members

c) The criteria manner and procedures of forming the Gov erning Bod y

d) The manner in which meetings are conducted

e) The notice period for such meetings

f) The designation manner of election and removal of offi cers

g) The powers and right of members

h) The pro cedures for conducting the annual general body meeting and

special meetings

i) Accounts and audit proc edures

j ) The manner in which the objectives and rules and regulations of the

soc iety can be changed

k) Other provisions as required by state acts

The areas for the purpose of the Act in Maharashtra are as follows with the

office of the Assi stant Registrar of Societies to regulate the functi oning of Societies

functio ning in those areas

(a) Greater Bombay Area

(b) Poona Are a

(c) Kolhapur Area

(d) Nashik Are a

(e) Aurangabad Area

(1) Nagpur Area

(g) Akola Are a

Maharashtra Rul es specify under Section 4A a special provision req umng the

Go verning Body of a society to furnish annually in the month of January returns in the

prescribed form relating to persons employed by the soci ety Section II of the rules also

state the requirement of submiss ion of accounts audited by a Chartered Accountant or a

person authorized by the State Government in a manner as specified in the rules and in

prescribed forms

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

SE T IO 25 - COMPANIE A f 1956

The Ind ian Companies Act 1956 is an All Ind ia Act and States have no authority

over it Section 25 of this Act provides for granting of licen se by the Central Govem ment

for form ation of n on-profit companies Sub- sect ion 4 of the Section 25 of the Act

permits a partners hip firm to become a member of any association or co mpany regis tered

unde r these provisions but on di ssol ution o f the firm the membership of company or

association sha ll lapse (K ochhar amp Jai n (987)

THE 11 H RAHTR COOPERATI E OC IET IES I CT 1960

In add ition to the Central Cooperati ve Societies Act 1904 Maharashtra has en acted

its own Act in 1960 with a view to am end and conso lidate some of the provision s

Provisions ha ve been modified or widened

i) to pro mo te thrift se lf-he lp and mutual a id amongst people with need s of

and int erests in co mmon

ii ) to provi de for clean devoted and efficient management relevant to the needs

of and infuse a ne w life into the cooperative soc ie ties

iii) to enahle div ersifying their act iviti es to put them on so und financial footing

iv) to ensure dem oc rat ic functioni ng to ge nerate employ me nt and increase

produ ction in all sec to rs of econo my

v) to incl ude mea sures to he tak en for better an d happie r conditi ons of living

for the members and

vi) to bring weaker sections of population within the fold o f coope rative

movement and for that purpose to consolidate and amend the law s rel a ting

to coopera tive soc ie ties in Maharashtra

In the absence of proper defini tion o f co operative principles arbi tra ry authority has been

vested in the Regi strar of Cooperat ive Societ ies to fo rmulate the princip les wh ich shall

normally incl ude

bull Advancemen t of economic interest of the members III acc ordance with public

mora ls dece ncy and the relev ant directive principles of State po licy enu nciated

in the Constitut io n of India

bull Regulation and restrict ion o f profi t mo tives

bull Promo tion of thrift mutual aid a nd sel f-h elp

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

bull Voluntary membership and

bull Democratic constitution of the society

Al thou gh Cooperative Soc ie ties normally function for the so le benefit of their

me mhers and not for the public at large they may sometimes be considered as non-profit

institutions by virtue of the spirit underlying their operat ions provided they are not engaged

in market tra nsact ions of goods and services generating profits for the be nefit of the

memhers

TI-l E TRA In UI 10 I ACT 190

Under the Act a trade union means any combination whether temporary or

permanent formed primarily for the purpose of regulating the relations between workmen

and em ployers Any federa tion of two or more trade - unions are al so cov ere d by the

Act This is a Centra l Act and its framework guides registra tion in different States of the

country Without gett ing into the controv ersy whether a trade union sh ould be treated as

a Non-Pro fit Orga nisation (NPO) or not the current survey proposed to include them 111

all sa mple States it found while listing in the ultimate area-sample units

A sizable number of NPOs engaged in running schools as well as exclus ive No nshy

Government schools found to be self-managed and non-pro fit making were inc luded in the

survey Most o f those were found to be registered und er Central or St ate Boa rds of

Education but not under an yone or more Acts mentioned in the preceding paragraphs

All such unit s were treated as reg istered units under the Government ad min istrative

framework withou t strictly being covered by legal provisions Some NPOs were found

registered under the Foreign Contribution (Regulations) Act 1976 (FCRA) Th e FCRA

had its or igin in the Emergency period and was passed in the wake of allega tions that

con tributions from ab road were being used to destabilize the gove rnm ent In 1984-85

the provisions of the Act were tightened The Act requires all assoc iations and organisations

recei vin g fore ign contributions to register themsel ves with the M inistry of Home affairs

for receiving any money from forei gn sources The government can also grant pr ior

permission to rece ive foreign contrihutions Institutions and organisations permitted to receive

fore ign contributions are required to maintain separate bank accounts and acc ount hooks

in resp ect of all foreign money recei ved by them Also they are required to submit yearly

accounts duly certi fied by a chartered accountant along with the balance sheet and statement

of receipt and payment to the Ministry of 1lome Affairs

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

V THE SURVEY I STR J[ENTS

The survey instrumen ts used for the survey of Non-Profit Organi sations (N POs) in

Maharashtra were alm ost the same as used for surveys conducted in Tam il Nadu and

West Be ngal F irstly a common set of objectives had been lai d down for all the State

Su rveys incl uding Maharashtra as indica ted below

(i) To es timate the total num ber of form al ised NP Os toge ther with associated

es timates of their employment reven ue and expenditure

(ii) To es timate the di str ibut ion of no n-formalised (including tra nsient) NPOs

together with associated es timates of their employment rev enue and

expenditure

(iii) To es timate the distribution of formalised and non-for malised institu tions

into major ac tiv ities as listed in NJC groups sub-g roups

(iv) To es timate the morta lity rates of ins tituti ons (both fo rmalised and

non formal ised ) that wi ll help validate the registration data ema nat ing from

the implementa tion of the Soc iet ies Act and

(v) To es timate the number of vo lunteers employed III the non-profit sector

quantum of time spe nt by them and to estimate empl oyment and ou tput

generated by vo lunteers

The objective men tioned at (iv) above cou ld no t be me t since it had not been

possible to conduct the separate survey of regis tered NPOs under the Societies Act using

the frame to be co nstructed from the records available at the office o f Registrar at the

regional and sub-regional offices

DEFINITION OF A NON PROFIT ORCA IS 110

The Non-Profit Organisat ion (NPO) is a term new in the Indian co ntext alt hough

it is in greater use in Western countries Fo r the present survey the structural-operational

definition of a NP O developed by the Center for Civil Society Stud ies of the Johns

Hopkins University has been ad opted Ac cording to thi s defi nit ion a Non Profit

Organization is an institut ion organization (ie a non -ho usehol d entity) which meets five

criteria sim ultaneously viz it is (a) organized (b) pri vate (c) non- profi t di stributing

(d) self-govern ing and (e) vol untary

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

T he above definition has been ope rat ional ised In the pre sent survey by describing

the five qu alifying attributes as under

(a) Organized An y institution whi ch has its own constitution charter fo r its

function ing is considered organi zed irrespective of whether it is formally registered

under any one of the statutory provisions Large scale people s movement s such as

Women s Movem ent Hum an Righ ts Movem ent Anti-nuclear Movem ent launched

and spearh eaded by groups whi ch arc formally well -organized but not registered

would be covered und er thi s definition So also the large number of unregistered

yet formal assoc iations at the grassroot level such as the youth clubs mahila

mandals and res idents we lfare assoc iations would be included under the definit ion

(b) Private me ans ins titutiona lly separate fro m govern ment This does not mean

that such organ izati ons can no t receive government grant or fin anci al support in

other fo rms or that govern ment o ffic ials cannot sit on the ir boards However

institutions se t up and fully owned by any department o f the Central or State

governments like Council for Adv ancement of Peoples Action and Rural Technology

(CAPART) National Dairy Development Board (NDDB) etc would not form part

of the NPO sector

(c) Self-governing The organisation should be equipped to control its own activities

and should not have its internal procedures for governance controlled by any ou tside

entity (govern ment or for-profit bus iness entities) which may have provi ded funds

to it

As mention ed above the Central and the State govern ments hav e set up several

NPOs unde r the Societies Act 1860 or the Co-operative So cieties Act 1904 Such

organisations have govern ing boards constituted by the government with the

government nominating the ir o fficers on the Board Often the government also

posts their personnel in these organi zations Sometimes the govern ments have the

rig ht to supersede the gove rn ing boards Lik e-wise under the Co-operat ives Ac t

the Registrar has po wers to am algamate di vide or reorganise a co-operative in

pu blic in terest Su ch institutions are not to be treated as self-govern ing unless

warranted by spec ific circumstances Trade unions by and large would fo rm part

o f the sector and are incl uded under the survey unl ess warranted by spec ific

circumstances

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

(d ) Non-Profit distributing Income ge nerating activities wh ich the societies

charitable or other inst itut ions may be engaged in may lead to profi ts accruing to

them However registration of an organiza tion under the five Acts mentioned earlier

is possib le only if it is engaged in non -profit maki ng acti vit ies Therefore by

de finition such pro fits savings or retained surplus arc not to be available for

distribution among the members o f the governin g hoard or oth er person s engaged

in promoting the insti tution but arc reinvested fur the acti vities o f the organization

(e) Voluntarv A s imple way of de finin g the term voluntary is a ny ac u vuy

underta ken on one s own vol ition and wi th no benefit to the doer In no

circumstances can a volu ntary wor ker be paid at his her market rate Essentially

such payments are made to meet part of the expend iture on transport and the like

One of the attributes of a nonprofit institution is that at least some part of human

resources it deploys either at the management level or programme level is obtained

without remunerati on or at less than the market rare of remu neration

SAIPLE DESIGN s S lIPLE SIZE

For the survey a sample desi gn was selected which could net the NPO s effectively

Like other Slates in Maharashtra also a three stage strat ified sampli ng design was adopted

the first s tage unit (fsu) being Districts the second stage unit (ssu) a Taluk in rur al

areas and a Town in urban arcax and finally the thi rd stage uni t (tsu) was a Village

and UfSvblock in rural and urban areas respecti vely In large-scale sa mpl e surveys

d ivid ing large c ities and towns into standard units facilita tes easy sample selec tion For

this purpose the National Sample Survey Organisation (NSSO) the premi er statistica l

survey age ncy of the country conducts a conti nu ing survey called the Urban Frame

Survey ( FS) which attempts to divide all c ities and towns into standard compact and

easily-ident ifiable units called Urban Fraine block s (UImiddotS) with a population of 600-800

(or 120-160 house holds) T he UFS was first conducted in 1059-63 and is be ing updated

since then once in five years On oper at ional considerations it was dec ided to prefix the

ultimate sam ple s ize to I of total number of v illa ges in rur al areas and I of UFSshy

blocks in urban areas of a dist rict T he specific details o f the desi gn are as fo llo V sshy

(a ) The National Sample Su rvey Organisation (NSSO) for its annual rounds of

soc io-eco nomic survey s has div ided Maharushua into six reg ions with geographically

contiguous and homogenous dist ricts grouped together as ba ic stra ta Th e same str ata

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

were used for the NPO survey with a s ligh t modification of taki ng out Greater Bombay

from the coastal region and treating th sa me as a s tra tum Stratum-w ise d ist ribution of

dis tri cts is given in Table 5 1

Table 51 Districts within each tratum

StratumRegion

( I )

I

(2)

Costal

(3)

GreaterMumbai Thane Raigad

Ratnagiri Sindaudurg

2 Inland Northern

Dhule

Nashik Jalgaon

3 Inland Western

Ahamadnagar

Pune atra angli

Sholapur Kohlapur

4 Inland Central

Aurangabad Jalna

Parbhani Beed

Nanded Osmanabad

Latur

5 Inland Eastern

Buldana Akola

Arnravati Yavatmul Wardha

Nagpur

6 Eastern Bhandra Chandrupur Gadchiroli

Note Total No ofDistricts = 30 (As per 991 census) Districts selected in the sample

MAHAR SHTRA DISTRICT 19)1 (

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

MAHAR SHTRA DISTRICT 19)1 (

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(b) In addition to Greater Bombay one more distric t namely Sindaudurg was

se lected from the coastal region From the Inland [orthern region onl y one distric t namely

Nas hik was se lec ted On the other hand from Inland Western reg ion two distri cts namely

Pune and Kol hapur were selected From the Inland Central region only one dis trict ie

Jal na was selected hom Inland Eastern region Arnravati and Nag pur districts were se lected

whereas Gadchiroli district was selected from the Eastern reg ion Thus in the State as a

who le initia lly a sample of nine districts were selected for the survcy but later it was seen

that Sinduadurg dist rict of the coastal region and Jalna from the Cen tral region were not

surveyed due to operational reasons bring ing down the total effective sample o f distr icts

fina lly to seven From the selected Isus ic districts taluks in rural areas and towns in

urban are as we re selected as ssus with probability proportional to num ber of N POs as per

Economic Census 1998 (EC-98) The Economic Census is the offic ial count of all

entrepreneuria l uni ts involved in any economic activity of either agri cultura l (exclu d ing crop

production or plantation) or non-agricultural sectors of the economy engaged in the produ ction

or distribution of goods or services not for the sole purpo se of own con sumption Econom ic

Ce nsus is conducted periodica lly by the entral Statistical Organisa tion (CSO) of the Ministry

of Statistics and Programme Implemen tation

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

(c) The init ial stipu lat ion of selec ting ha lf the number of ssus could not be met

due to cost con siderations and operational difficulties

(d) Villages and UFS blocks were sampled usin g the fo llowing procedure

VillagesUPS-blocks were first arranged in the descending order of the number

of NP Os (as per the EC-98) in them Ou t of the above arrangement n2 numbers at the

top where n wa s the pre-determined samp le size of villagesUFS blocks to be sampled

were selected with probabilit I to be included in stratum 1 Another nl2 villages (or UFS

block s) were selected on the basis of simple rand om sam pling out of N - n2 rem aining

villages (or UFS blocks) which constituted stratu m 2 where N represented the total number

of villages (or of UFS b locks) in the Taluk (or town) under consideration

Tables 52 (A) and 52 (B) give the distribution of sample sizes at diffe rent stages

111 rural and urban areas o f Maharasht ra respect ively

Table S2A Di uributlon of ample Size at different rages in Rural Areas

( 1) (2) (3) (-t-) (5) (6) (7)

I Arnruvati 1 2 2 1530 20 14 Gadchiroli 12 2 2 1346 17 17 3 Kolhapur 12 2 2 118S 13 13 4 Murnbai o 0 0 0 0 0

5 Nagpur 14 2 2 lh35 I~ 18 6 Nashik 13 2 0 IH7R 21 0 7 Pune 14 2 I 18()lJ 19 0

Total 109

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

Table 528 Distributlon of Sample Size itt different stages in rban Areas

I I bull

Actua l No of Towns

Sampled

Stipulated No of UFS Blocks

in Sample

Act ual No of UFS Blocks

Sampled

( I ) (2) (3) (4) (5) (6) (7)

I Amravati II 2 2 1213 13 II 2 Gadch iro li 4 1 I 120 4 4 3 Kolhapur 12 I I 1269 13 13 4 M umbai J 1 I 14827 151 128 5 Nag pur 23 3 I 3046 32 24 6 Nashik 17 2 I 1986 20 14 7 Pun e 33 2 I 4199 42 25

Total

Table 53 Distributiun of ElTcctiw Sample uf POs Netted

Rural Urban Total No of Total No of

NPOs netted NPOs netted bullbull (I) (2) (3) (4)

1 Amravati 19 8 27 2 Gadchiroli 64 7 71 3 Kolhapur 40 17 57 4 Mumbai 0 63 63 5 Nagpur 33 20 53 6 Nashik 0 23 23 7 Pllne () 18 18

Total

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

It may be see n from the tables that out of the total number of 93 86 villages in

the sam ple districts a sample of 109 villages were originally sel ect ed in the sample but

62 villages we re only sur veyed This indicates that the ultimate effective rural sample

was 066 instead of stipulated I Simil arly in urban areas o ut of total number of

26660 UFS blocks in the district a sample of 275 UFS blocks were orig inall y selected

in the sample but 2 I9 UFS blocks were only survey ed puuing the effective sampl ing

fract ion of 08 ins tead of stipulated fraction of J Table 53 gives the distri bution of

effective sample sizes in terms o f number of nett ed NPOs in the Maharasht ra NP O

survey Tables 52(A ) and 52(B) also indicate apprec iabl e shortfall between the or iginal

and effective sample sizes due to the problem of non -response and calling off the survey

before co mpletion due to inordinate delay on the part o f the field agency

The parallel organizational survey of NPO regist ered under the Socie ties Act using

the lists to be compiled from the records of the Regi strar as conducted in oth er States

did not take -off in Maharashtra due to operational problems with the field agency

SCHEDliLES OF E QUlin

The primary data in organ isational surveys of Non Profit Organisations were gathered

through the use of two schedules of enquiry viz schedule 01 the Listing Schedule and

sched ule 0 2 the NPO Schedule The listing sche dule was meant for prep ari ng

comprehensive lists of NPOs in the sample villages UFS blocks and the NPO Schedule

for co llecting info rm ation on organisational activity employmen t and finan cial details of

the NPOs netted in the sample vill ages UFS blocks The detail s of information to be

coll ected in these schedules are described below

DETAILS IN SCHEDULE n1 (Tn hl ca n vassed in sa m ple villages UFS B1olks )

Block 1 Location particulars (State Di stric t I Block or Town I sample vill age or

UFS block)

Block 2 Addresses of NPO s with two major activities from Block 3 as furni shed by

the house ho ltl respondent and from know led geable persons

Block 3 List of Hou ses and Households with particulars or non-agricultural enterpri ses

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

DETAILS IN S HEDlILE 2 (To he canvassed at Identified NPOs)

Block 1 Identification Details (State Di strict Taluk or Tow n village or UFS

blocks)

Block 2 The foll owi ng items of informatio n were to be collected in this block

(i) Name and de signation of respondent

(ii) Name and address of the NPO

(iii) Name and design ation of the Chief functionary

(iv) Whether the Ch ief Funct ionary is the founder or one of the founders

(v) Whet her the NPO is registered and if so under which Ac t(s) and

year of regis tration

(i) Whether registered under FCRA or und er any IT Act if so specify

in the section

Block 3 General Information comprising the follow ing item s of information

(i) Wh ether the NPO is membersh ip based and if so the type of

membership

(ii) Whether there 1$ a Go vern ing Bod y if so num ber of members and

their term

(iii) Whether the members of the Govern ing Bod y no minated elected or

both and who nominates or e lects them

(iv) Frequency of Go verni ng Board meeti ng

Block 4 Activities of the Organisat ion (Areas of work target-grou ps and number of

interventions etc)

BlockS Employment De tail s (Number of re gular employees Co ntractual em ployees

and Volunteers with male female and Full-time Part-time breakdowns Hours

of work put in by part -time volunteers)

Block 6 Recei pt in R upees (Re ceipts fo r the last three yea rs under d ifferent

head s and identification of donors with distinction between rece ipts H1

cash and kind)

Block 7 Ex penditure in Rupees (Fo r the last three years under d ifferent

expenditure heads)

Block 8 Fixed Assets (Ite m-w ise possessions and approximate presen t value)

Block 9 Project(s) Speci fic Detai ls (Ti tle Date of start Ex pe nditure during

1999-2000 and since incep tion Re ce ipts during 1999-2000 Total

estimated project cost and Sources of funds)

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

ESTIMATION PROCEDURE

Usual es timation procedure for multi-s tage designs for estimating tota ls and ratios were

used which is giv en as follows

For estimating di strict totals in the rural sector say the to ta l number of NPOs the

follow ing form ula has been used

n me Mi - rnn ~

Y=1n L 1Pi [ - shy poundJ Yij mi2 1i=1 J=

where Y = district level estimate of total number of NPOs

n = nu mber of taluks selected 10 the di strict

pi = probabil ity of se lection o f i ta luk

M = total number of vill ages in the i taluk I

mil = number of villages se lected 10 stratum 1 of i taluk (100 selection)

mi2

= number of villages se lected in stratum 2 of i taluk on the basis of SRS

y = number of NPOs 10 the Jth village of i talu k 11

1n the urban sample o f Maharashtra alth ough it was originally stipulated to select

the dist rict town purposively (ass igning probability I and treating it as a separate stratum)

and at least one tow n from amongst other towns in sam ple districts but at the processing

stage it was observed that in most of the districts only district-tow ns were surveyed and

none amongst other towns of the district had been surveyed Consequently the estimation

procedure was adj usted to treat all sample towns in a district incJuding the distri ct town

having been selected with prohability proportional to number o f NPOs as per EC-98

Acc ordingly the same formula as used for the rural sector was also used for the urban

sector in Maharashtra as g iven as follows shy

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

n mn rrua

y =1InL 1Ipi [ L yij + (Mi - rnn ) I rruaL Yij ]

i=1 j=1 j=1

Notations are the same as for the rural sector by repla cin g taluk and villages by

town and UFS-block respectively

Considering the State to have three basic strata as Rural Greater Murnbai and

Other-Urban State-level estimates were obtained from the district es timates using

estimation procedure for stratified pps sampling where size was the population figures as

per 200 1 - Populat ion Census

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

VI THE S RVE Y RESULTS

In thi s chap ter imp ortant findi ngs from the organi sation survey o f the no n-pro fit

insti tution s in M aharashtra ha ve been pre sented Th e statistical estimates of various

parameters have been firstly prepared district -w ise separately for rural and urban and then

co mbined to obtai n State Level estima tes us ing the estimation procedure described in the

prev iou s chapter

The mum parameters for which estimates have bee n compiled and presented in the

following sections are the s ize of the sec tor the employ ment and vol unteerism there-in

information on issues of governa nce act ivities in which the sec tor engages itself sources

of revenues generated patterns of expenditure and a few other related parameters Hopefully

the estimates now summarized in this section will enable the rese archers policy makers

and the Civil Society leaders to have a feel of import ant dimensio ns of the sector in the

State arrived at through a sc ientifica lly designed study first ever o f its kind

CERTAI CAVEATS

T he fiel d work of the Mahar ashtra Survey did no t see m to be up to the mark by

any standards Firstly the survey did not co ver a sizable porti on of the stipulated sample

Two districts were not covered at all while in two d istr icts rura l areas were not surveyed

In the urban sample in all the distr icts exce pt one only district towns were surveyed At

the data processing stage wh ile scrutinizing the schedules a number of complete and

partial non-response cases were fou nd All these fac tors led to maki ng a number of

assumptions rendering validity of some esti mates to be questionable Based on these

co ns iderations it was dec ided to lim it the pres entation o r result s at the State level only

without giving district-wise breakdown Inspite of all the limitations with intensive scrutiny

and some plau ible editing and corrections it has been possible to present somewhat

usable results which generally seem also co mparable with o ther St ate results However

users will have to exercise so me caution while maki ng use of the results

THE SIZE OF THE SECTOR

The survey provided an estimate of 88549 NPOs in Maharashtra of which 53 157

(60 ) were in rural areas and 35 392(40) in urban areas It thus turns out that voluntary

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

action IS mo re promi nen t In rur al areas as co mpared to Maharashtra has

urban areas Table 6 1 pres e nts estimated num bers of aro und 885

regi ste re d a nd unre gi stered NPOs w ith rura l-urba n thousand NPOs

breakdown The table indicates thai the number of registered operating in the unit s were 68 343 (77) which fairly exceed ed the number state o f un-registered uni ts wh ich were 20 206 (23)

Table 61 E timatcd numbers or Registered and Unregistered PO s with rural-u rba n break-up

Location units units

(I) (2) (3) (4)

Rural 43534 9623 53157 Urban 2+ 809 105 3 35392 Total 20206 88549

40

60

bull Rural bull Urban bull Registered bull Unregistered

LEG L ST T )) I EL OF GOV I c

General particular

As has been sta ted in Chapter 4 NPOs get themsel ves regi st ered under on e o r more

specified legal or admini strative provisions with a view to get some advantages in pursuing

the ir ac tivitie s Table 6 2 presen ts reg is tra tion and related particulars of NP Os in

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

bullbull

Maharashtra Most of the N POs (94) had the ir headquarters at the site where they were

interviewed These percentages were 98 and 88 for rural and urban areas respectively

About 66 of the NPOs had thei r Founder or one of the Founders as the Chief Executive

of the organisa tion this percentage wa s higher in rural are as (73) as compare d to 56

in urban areas This may be indicative of a s ligh tly bett er tendency on the part of urban

NPOs to c rea te a second line o f command and co ntro ls

Table 62 a lso in di cat es th a t 77 of the NPOs in

Maharashtra are reg istered under one Act o r the othe r Thes e Most of the NPOs percentages were 82 and 70 in rural and urban areas

(77) inres pective ly The tabl e also indicat es majority of the NPOs

Maharashtra are about 40 in rural areas whi ch were schools were found to registered under one be reg istered with the Ce ntral or S tate Boards of Education

Act or the other followed by 33 of NPOs regi stered und er the Societies Act

On the ot her hand in urban ar eas J I of the NPOs were

found to bc regist ered und er the Tru st Ac ts foll owed by 16

regis te red under the Societies Act

Table 62 Re istration and Related Particulars or PO s

Rural Urban Total

( I ) (2) (3) (4)

I HQ at site () 98 88 94 2 Founders as hiefE ecutive () 73 56 66 3 Registered 43534(8190) 24809(7010) 68 343( 77 18)

a) ocicties Act 17602(J311) 5593( 1580) 23195(2620) b) Trust Act 4286(806) 11090(3 I 34) 15376( 1736) c) Company Act - Sec 25 136(026) 1540(435) I 676( 189) d) Co-operative Act 13 (026) 3791(1071) 3929(444) e) Other A t 21372(4021 ) 2795(790) 24167(2729)

4 Un-regi tered 9623( 181()) 10583(2990) 20206(2282)

Tota l

(i) fig ures in brackets are percentages to respective column-total (ii) Note - Not a sin gle NPO registered under Trade Union Act was netted in the sample (iii) If a NPO was reg istered under mo re than one Act simultaneously they were counted only

once preference having been given to (a) over (b) to (e) (b) ov er (c) to (e) and so on

Member hip

It was noted that all the NP Os netted in the sample in Maharash tra wh ether

registered or unregistered were found to be membersh ip-based institutions Table 63 presents

the dis tribution of member sh ip - institutions by the type of membership offered by them

It may be see n from the table that the two predominant forms of membershi p were the

Li re mem bersh ip and the Annua l membersh ip lt is interesting to note that while the

Li re me mbership constituted the largest Iorm o f membership amongst the registered units

wh ich we re 59 of the tot al regi stered units 78 of the total unreg ist ered unit s had

annual members indicating that this form o f membership was the most predominan t one

am on gst unreg istered units

Table (bullJ Distribution of POs by Type of Membership

Registration No of I

Status membership based NPOs bull I

(I) (2) (4) (i) (6) (7) (8)

Reg istered l1l343 68343 JX54(5fgt4) 40 I (J(58Y8) 6555(959) 33OJ6(4l34) 7254( IOtgt)

Unregistered 20206 20206 31 l7(l577) IOS62(5376) 4662(1307) 15774(7l07) 41(020)

88549

(i) Figures in brackets are percentage to tota l number o f membershi p based NPOs (i i) Perc entages when added exceed 100 sin ce a NPO may have more than one type o f membership

Governance

Eac h NPO netted in the sample was found to ha ve a Governi ng Bod y to manage

its affairs From the percentage distribution or organ isation s accord ing to num ber of Board

members given in Tabl e 64 it is seen that the majori ty of organ isations have Govern ing

Boards w ith memb ers I I to 20 (46) follow ed by members 7 or les s (34 ) an d 8 to

10 (19) The term of Board members varies fro m one year to life but is co mmonly

above three years (28 ) The Gov erni ng Boards of a majority of POs (ove r 32 ) met

twice per year A significant proportion of the Boards (27 ) met even qu ar terly ie four

time s a year T he Boards wh ich had stipulated to have only one meeting per year were

25 of all NPOs The NPOs which did 110t have any fixed peri odici ty of Board meetings

an d thus met only as and when required were estimated to be about 14 of all

instit utions in the no n profit sec tor of M ah arastra

Table 64 SOI1ll Indicators of Governance

I bull I I Total

(I) (2) (3) (4)

I Number of instit utions with Governing Body 53157 35392 R8 549 2 Percen tage Distribution of NlOs ishy

(i) By numbcr olGoverning Body members (a) 7 or less 40 15 2612 3454 (b) 8 -10 837 3390 1857 (c) II - 20 5124 3X40 46 11 (d) 2 1and above 024 158 078

Tota l 10000 10000 10000

(ii) By term of members (a) I year 806 455 1 2303 (b) 2 year 150 721 379 (c) 3 yea rs 1788 1766 1779 (d) 3+ year 4044 950 2807 (e) Life 18 3 1805 1822 (e) Others 1379 207 910

Total 10000 10000 10000

(ii) By per iod icity of Meetings (a) Once in a year 3650 872 2540 (b) Once in 6 mon ths 2812 3832 32 19 (c) Once in 3 months 22 06 3590 27 59 (d) Others 1332 1706 1482

Total 10000 10000 10000

Figures in brackets are percentages to total NP Os (Rural or Urban or Total ) Others refer to no fixed periodity mos tly as and when required

Act ivit ies of NPOs

With a view to find ing out as to what were the work areas which were of

interest to voluntary initiati ves in Maharashtra the sur vey sc hedules had qu estions on

areas of ac tivi ties in whi ch the sampled NPOs were engaged On classify ing them into

broad groups adopting the 3-digit leve l classification of the National Industrial Classification

(NIC) 1987 it turned out that the three leading groups of ac tivities in which NPOs

were ma inly ac tive in Maharashtra were Relig ion Communi ty and Social Services and

Sports and Culture in that order the percentage of Organizat ions engaged in these sectors

being 35 30 an d 13 respect ively Whereas in rural areas the th ree lead ing activity shy

grou ps were Religion Commun ity and Social Welfare Serv ice followed by Education

In urban areas al so the lead ing acti vity -group was Rel igion (3 1) foll owed by Spor ts

and Culture (24) in the second place and Commun ity service e tc occupyi ng the thi rd

place with (18 ) o f units Howev er com munity and wel fare serv ices arc mostly offered

as seconda ry ac tivity by a la rge num ber o f no n- profit inst itut ions Table 6 5 presen ts

d istrib ution of NPOs by areas of acti vity w ith rural -urban breakdown Similar data for

reg iste red and unregistered NPOs ha ve been presented in Table 6 6 If the d istribution o f

NPOs by their regis trat ion status is look ed into it turns out that registered organizations

have Community and Socia l Service as the leading most main acti vity with percentage

as 345 and unregistered orga ni zati on s have Re lig ion as the lead ing mo st ma in activ ity

with percenta ge of 392 Amongst reg istered units the secon d and third places arc occupied

by Rel ig ion (34 ) and Education ( 17) in that urder Amongst unregi stered uni ts on

the othe r hand Sports and C ulture (32) ha s taken the sec und place fo llowed by

Commun ity and Soc ial Services (14 )

Table 6S Activities of NPO s hy Locution

I bull I t U r ban

( I ) (2) (3) (4) (5)

I Education 920 lJ2I 922 amp 456 8096( 1523) 5073( 14n) 13169( 1487)

2 Heallh 930 amp 931 49(092) 1400(395) 1889(2 13)

3 Sports amp Cu lture 959 2635(496 ) 8469(2393) 11 104 (1254) 4 Connuuni ty amp Social

Welfare crv ice 941 amp 949 20100(37 81 ) 6380( 1803) 26480(299 1)

5 Religion 940 20263(38 12) 10829(3060) 31092(35 11) 6 Others 9 1D 942 943 amp 952 1574(296) 324 1(9 16) 48 15(544 )

Total II I I

figure s in brac kets are percentage with respect to total g iven in the last row

Column( I) ind icates the most important ac tivity in case o f m ultiple activities carr ied by a NPO

Table ()6 Act ivit ies of

I I

( 1) (2)

I Education 920 921 922 amp 1)56

2 Health 930 amp 93 1

3 Sports amp Culture 959

4 Community amp Social Welfare ervice 941 amp 949

5 Religion 940

6 thers 910 942 943 amp 952

figures In brackets are percentage wi th

POs hy Registration Status

Registered Unregistered

(3) (4) n

11 619( 17(0) 1550(767) 13169( 1487)

831(12_ ) t 058(524) 1889(213)

47 9(693) 6365(3150) I I I 04( 1254)

23569(3449) 2911( 1441) 26480(2990)

13167(33 90) 7925(3922) 3 1092(35 11)

4418(646) 397( 196) 4815(544)

683-13 (10000) respec t to to tal gI ven III the las t ro w

Sports amp

Cultu re

13

Social Servi ce

30

Others

5 Education

r 15

Health

2

EMPLOYEES NO 01 NTEERS

Table 67 g ives the es timates of employment and the number

of volunteers deployed by the Non -Profit Sector in Maharashtra

The table indicat ed in Maharashtra the total number of persons

en gaged in the NPO sector was 1082545 o ut of which

220594 (204) were the paid employ ees anel the remaining About one million 8619 5 J (796) worked as Volunteers during the year 2000 shy

persons In 200 1 Out of the total nu mber of paid employee s 744 were Maharashtra are

working full-time and the remaining 256 were working only engaged in the

part-time On the other hand am o ngst volunteers part-time non-profit sector

volunteers were o f the order of 95 of the tot al volunteersout of which 80 anel full -time ones only 5 1t is also seen that 574 of the are volunteers and to tal manpowe r engaged in NPOs are in urban areas out of20 only are paid

employees which 126 are paid employees and the remaining 44 8

arc vo lunteers Rural areas on the other hand account for

42 6 of the tot al ma npower wi th 77 paid em p loyees and

34 9 Volunteer s It is al so inte resting to note that in

Maharasht ra the reg istered NPOs account ed for 78 of the

to tal manpower engaged in the sec tor As expected amongst

Volunteers the non-profession als far exceeded the professionals

with a ra t io of 90 10 but am on gst the pa id employees the

ratio was almost even as 5248

Table 67 Employment in NPO s hy L cation and Registration Status

bull FullTime bull

Rural 56049 27675 83724 5829 371376 377 205

Urban 108092 28778 136870 7727 447019 484 746

Total 164141 56453 220594 43556 8 18395 86 1951

Registered 158460 51384 209 844 22587 611819 634406

Unregiste red 5681 5069 10750 20969 206 576 227545

ProfessionalNon Professional

Professional 87555 17973 105528 6402 83384 89786

No n Prof 76586 38480 115066 37154 7350 11 772165

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

Table 64 SOI1ll Indicators of Governance

I bull I I Total

(I) (2) (3) (4)

I Number of instit utions with Governing Body 53157 35392 R8 549 2 Percen tage Distribution of NlOs ishy

(i) By numbcr olGoverning Body members (a) 7 or less 40 15 2612 3454 (b) 8 -10 837 3390 1857 (c) II - 20 5124 3X40 46 11 (d) 2 1and above 024 158 078

Tota l 10000 10000 10000

(ii) By term of members (a) I year 806 455 1 2303 (b) 2 year 150 721 379 (c) 3 yea rs 1788 1766 1779 (d) 3+ year 4044 950 2807 (e) Life 18 3 1805 1822 (e) Others 1379 207 910

Total 10000 10000 10000

(ii) By per iod icity of Meetings (a) Once in a year 3650 872 2540 (b) Once in 6 mon ths 2812 3832 32 19 (c) Once in 3 months 22 06 3590 27 59 (d) Others 1332 1706 1482

Total 10000 10000 10000

Figures in brackets are percentages to total NP Os (Rural or Urban or Total ) Others refer to no fixed periodity mos tly as and when required

Act ivit ies of NPOs

With a view to find ing out as to what were the work areas which were of

interest to voluntary initiati ves in Maharashtra the sur vey sc hedules had qu estions on

areas of ac tivi ties in whi ch the sampled NPOs were engaged On classify ing them into

broad groups adopting the 3-digit leve l classification of the National Industrial Classification

(NIC) 1987 it turned out that the three leading groups of ac tivities in which NPOs

were ma inly ac tive in Maharashtra were Relig ion Communi ty and Social Services and

Sports and Culture in that order the percentage of Organizat ions engaged in these sectors

being 35 30 an d 13 respect ively Whereas in rural areas the th ree lead ing activity shy

grou ps were Religion Commun ity and Social Welfare Serv ice followed by Education

In urban areas al so the lead ing acti vity -group was Rel igion (3 1) foll owed by Spor ts

and Culture (24) in the second place and Commun ity service e tc occupyi ng the thi rd

place with (18 ) o f units Howev er com munity and wel fare serv ices arc mostly offered

as seconda ry ac tivity by a la rge num ber o f no n- profit inst itut ions Table 6 5 presen ts

d istrib ution of NPOs by areas of acti vity w ith rural -urban breakdown Similar data for

reg iste red and unregistered NPOs ha ve been presented in Table 6 6 If the d istribution o f

NPOs by their regis trat ion status is look ed into it turns out that registered organizations

have Community and Socia l Service as the leading most main acti vity with percentage

as 345 and unregistered orga ni zati on s have Re lig ion as the lead ing mo st ma in activ ity

with percenta ge of 392 Amongst reg istered units the secon d and third places arc occupied

by Rel ig ion (34 ) and Education ( 17) in that urder Amongst unregi stered uni ts on

the othe r hand Sports and C ulture (32) ha s taken the sec und place fo llowed by

Commun ity and Soc ial Services (14 )

Table 6S Activities of NPO s hy Locution

I bull I t U r ban

( I ) (2) (3) (4) (5)

I Education 920 lJ2I 922 amp 456 8096( 1523) 5073( 14n) 13169( 1487)

2 Heallh 930 amp 931 49(092) 1400(395) 1889(2 13)

3 Sports amp Cu lture 959 2635(496 ) 8469(2393) 11 104 (1254) 4 Connuuni ty amp Social

Welfare crv ice 941 amp 949 20100(37 81 ) 6380( 1803) 26480(299 1)

5 Religion 940 20263(38 12) 10829(3060) 31092(35 11) 6 Others 9 1D 942 943 amp 952 1574(296) 324 1(9 16) 48 15(544 )

Total II I I

figure s in brac kets are percentage with respect to total g iven in the last row

Column( I) ind icates the most important ac tivity in case o f m ultiple activities carr ied by a NPO

Table ()6 Act ivit ies of

I I

( 1) (2)

I Education 920 921 922 amp 1)56

2 Health 930 amp 93 1

3 Sports amp Culture 959

4 Community amp Social Welfare ervice 941 amp 949

5 Religion 940

6 thers 910 942 943 amp 952

figures In brackets are percentage wi th

POs hy Registration Status

Registered Unregistered

(3) (4) n

11 619( 17(0) 1550(767) 13169( 1487)

831(12_ ) t 058(524) 1889(213)

47 9(693) 6365(3150) I I I 04( 1254)

23569(3449) 2911( 1441) 26480(2990)

13167(33 90) 7925(3922) 3 1092(35 11)

4418(646) 397( 196) 4815(544)

683-13 (10000) respec t to to tal gI ven III the las t ro w

Sports amp

Cultu re

13

Social Servi ce

30

Others

5 Education

r 15

Health

2

EMPLOYEES NO 01 NTEERS

Table 67 g ives the es timates of employment and the number

of volunteers deployed by the Non -Profit Sector in Maharashtra

The table indicat ed in Maharashtra the total number of persons

en gaged in the NPO sector was 1082545 o ut of which

220594 (204) were the paid employ ees anel the remaining About one million 8619 5 J (796) worked as Volunteers during the year 2000 shy

persons In 200 1 Out of the total nu mber of paid employee s 744 were Maharashtra are

working full-time and the remaining 256 were working only engaged in the

part-time On the other hand am o ngst volunteers part-time non-profit sector

volunteers were o f the order of 95 of the tot al volunteersout of which 80 anel full -time ones only 5 1t is also seen that 574 of the are volunteers and to tal manpowe r engaged in NPOs are in urban areas out of20 only are paid

employees which 126 are paid employees and the remaining 44 8

arc vo lunteers Rural areas on the other hand account for

42 6 of the tot al ma npower wi th 77 paid em p loyees and

34 9 Volunteer s It is al so inte resting to note that in

Maharasht ra the reg istered NPOs account ed for 78 of the

to tal manpower engaged in the sec tor As expected amongst

Volunteers the non-profession als far exceeded the professionals

with a ra t io of 90 10 but am on gst the pa id employees the

ratio was almost even as 5248

Table 67 Employment in NPO s hy L cation and Registration Status

bull FullTime bull

Rural 56049 27675 83724 5829 371376 377 205

Urban 108092 28778 136870 7727 447019 484 746

Total 164141 56453 220594 43556 8 18395 86 1951

Registered 158460 51384 209 844 22587 611819 634406

Unregiste red 5681 5069 10750 20969 206 576 227545

ProfessionalNon Professional

Professional 87555 17973 105528 6402 83384 89786

No n Prof 76586 38480 115066 37154 7350 11 772165

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

being 35 30 an d 13 respect ively Whereas in rural areas the th ree lead ing activity shy

grou ps were Religion Commun ity and Social Welfare Serv ice followed by Education

In urban areas al so the lead ing acti vity -group was Rel igion (3 1) foll owed by Spor ts

and Culture (24) in the second place and Commun ity service e tc occupyi ng the thi rd

place with (18 ) o f units Howev er com munity and wel fare serv ices arc mostly offered

as seconda ry ac tivity by a la rge num ber o f no n- profit inst itut ions Table 6 5 presen ts

d istrib ution of NPOs by areas of acti vity w ith rural -urban breakdown Similar data for

reg iste red and unregistered NPOs ha ve been presented in Table 6 6 If the d istribution o f

NPOs by their regis trat ion status is look ed into it turns out that registered organizations

have Community and Socia l Service as the leading most main acti vity with percentage

as 345 and unregistered orga ni zati on s have Re lig ion as the lead ing mo st ma in activ ity

with percenta ge of 392 Amongst reg istered units the secon d and third places arc occupied

by Rel ig ion (34 ) and Education ( 17) in that urder Amongst unregi stered uni ts on

the othe r hand Sports and C ulture (32) ha s taken the sec und place fo llowed by

Commun ity and Soc ial Services (14 )

Table 6S Activities of NPO s hy Locution

I bull I t U r ban

( I ) (2) (3) (4) (5)

I Education 920 lJ2I 922 amp 456 8096( 1523) 5073( 14n) 13169( 1487)

2 Heallh 930 amp 931 49(092) 1400(395) 1889(2 13)

3 Sports amp Cu lture 959 2635(496 ) 8469(2393) 11 104 (1254) 4 Connuuni ty amp Social

Welfare crv ice 941 amp 949 20100(37 81 ) 6380( 1803) 26480(299 1)

5 Religion 940 20263(38 12) 10829(3060) 31092(35 11) 6 Others 9 1D 942 943 amp 952 1574(296) 324 1(9 16) 48 15(544 )

Total II I I

figure s in brac kets are percentage with respect to total g iven in the last row

Column( I) ind icates the most important ac tivity in case o f m ultiple activities carr ied by a NPO

Table ()6 Act ivit ies of

I I

( 1) (2)

I Education 920 921 922 amp 1)56

2 Health 930 amp 93 1

3 Sports amp Culture 959

4 Community amp Social Welfare ervice 941 amp 949

5 Religion 940

6 thers 910 942 943 amp 952

figures In brackets are percentage wi th

POs hy Registration Status

Registered Unregistered

(3) (4) n

11 619( 17(0) 1550(767) 13169( 1487)

831(12_ ) t 058(524) 1889(213)

47 9(693) 6365(3150) I I I 04( 1254)

23569(3449) 2911( 1441) 26480(2990)

13167(33 90) 7925(3922) 3 1092(35 11)

4418(646) 397( 196) 4815(544)

683-13 (10000) respec t to to tal gI ven III the las t ro w

Sports amp

Cultu re

13

Social Servi ce

30

Others

5 Education

r 15

Health

2

EMPLOYEES NO 01 NTEERS

Table 67 g ives the es timates of employment and the number

of volunteers deployed by the Non -Profit Sector in Maharashtra

The table indicat ed in Maharashtra the total number of persons

en gaged in the NPO sector was 1082545 o ut of which

220594 (204) were the paid employ ees anel the remaining About one million 8619 5 J (796) worked as Volunteers during the year 2000 shy

persons In 200 1 Out of the total nu mber of paid employee s 744 were Maharashtra are

working full-time and the remaining 256 were working only engaged in the

part-time On the other hand am o ngst volunteers part-time non-profit sector

volunteers were o f the order of 95 of the tot al volunteersout of which 80 anel full -time ones only 5 1t is also seen that 574 of the are volunteers and to tal manpowe r engaged in NPOs are in urban areas out of20 only are paid

employees which 126 are paid employees and the remaining 44 8

arc vo lunteers Rural areas on the other hand account for

42 6 of the tot al ma npower wi th 77 paid em p loyees and

34 9 Volunteer s It is al so inte resting to note that in

Maharasht ra the reg istered NPOs account ed for 78 of the

to tal manpower engaged in the sec tor As expected amongst

Volunteers the non-profession als far exceeded the professionals

with a ra t io of 90 10 but am on gst the pa id employees the

ratio was almost even as 5248

Table 67 Employment in NPO s hy L cation and Registration Status

bull FullTime bull

Rural 56049 27675 83724 5829 371376 377 205

Urban 108092 28778 136870 7727 447019 484 746

Total 164141 56453 220594 43556 8 18395 86 1951

Registered 158460 51384 209 844 22587 611819 634406

Unregiste red 5681 5069 10750 20969 206 576 227545

ProfessionalNon Professional

Professional 87555 17973 105528 6402 83384 89786

No n Prof 76586 38480 115066 37154 7350 11 772165

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

Table ()6 Act ivit ies of

I I

( 1) (2)

I Education 920 921 922 amp 1)56

2 Health 930 amp 93 1

3 Sports amp Culture 959

4 Community amp Social Welfare ervice 941 amp 949

5 Religion 940

6 thers 910 942 943 amp 952

figures In brackets are percentage wi th

POs hy Registration Status

Registered Unregistered

(3) (4) n

11 619( 17(0) 1550(767) 13169( 1487)

831(12_ ) t 058(524) 1889(213)

47 9(693) 6365(3150) I I I 04( 1254)

23569(3449) 2911( 1441) 26480(2990)

13167(33 90) 7925(3922) 3 1092(35 11)

4418(646) 397( 196) 4815(544)

683-13 (10000) respec t to to tal gI ven III the las t ro w

Sports amp

Cultu re

13

Social Servi ce

30

Others

5 Education

r 15

Health

2

EMPLOYEES NO 01 NTEERS

Table 67 g ives the es timates of employment and the number

of volunteers deployed by the Non -Profit Sector in Maharashtra

The table indicat ed in Maharashtra the total number of persons

en gaged in the NPO sector was 1082545 o ut of which

220594 (204) were the paid employ ees anel the remaining About one million 8619 5 J (796) worked as Volunteers during the year 2000 shy

persons In 200 1 Out of the total nu mber of paid employee s 744 were Maharashtra are

working full-time and the remaining 256 were working only engaged in the

part-time On the other hand am o ngst volunteers part-time non-profit sector

volunteers were o f the order of 95 of the tot al volunteersout of which 80 anel full -time ones only 5 1t is also seen that 574 of the are volunteers and to tal manpowe r engaged in NPOs are in urban areas out of20 only are paid

employees which 126 are paid employees and the remaining 44 8

arc vo lunteers Rural areas on the other hand account for

42 6 of the tot al ma npower wi th 77 paid em p loyees and

34 9 Volunteer s It is al so inte resting to note that in

Maharasht ra the reg istered NPOs account ed for 78 of the

to tal manpower engaged in the sec tor As expected amongst

Volunteers the non-profession als far exceeded the professionals

with a ra t io of 90 10 but am on gst the pa id employees the

ratio was almost even as 5248

Table 67 Employment in NPO s hy L cation and Registration Status

bull FullTime bull

Rural 56049 27675 83724 5829 371376 377 205

Urban 108092 28778 136870 7727 447019 484 746

Total 164141 56453 220594 43556 8 18395 86 1951

Registered 158460 51384 209 844 22587 611819 634406

Unregiste red 5681 5069 10750 20969 206 576 227545

ProfessionalNon Professional

Professional 87555 17973 105528 6402 83384 89786

No n Prof 76586 38480 115066 37154 7350 11 772165

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

EMPLOYEES NO 01 NTEERS

Table 67 g ives the es timates of employment and the number

of volunteers deployed by the Non -Profit Sector in Maharashtra

The table indicat ed in Maharashtra the total number of persons

en gaged in the NPO sector was 1082545 o ut of which

220594 (204) were the paid employ ees anel the remaining About one million 8619 5 J (796) worked as Volunteers during the year 2000 shy

persons In 200 1 Out of the total nu mber of paid employee s 744 were Maharashtra are

working full-time and the remaining 256 were working only engaged in the

part-time On the other hand am o ngst volunteers part-time non-profit sector

volunteers were o f the order of 95 of the tot al volunteersout of which 80 anel full -time ones only 5 1t is also seen that 574 of the are volunteers and to tal manpowe r engaged in NPOs are in urban areas out of20 only are paid

employees which 126 are paid employees and the remaining 44 8

arc vo lunteers Rural areas on the other hand account for

42 6 of the tot al ma npower wi th 77 paid em p loyees and

34 9 Volunteer s It is al so inte resting to note that in

Maharasht ra the reg istered NPOs account ed for 78 of the

to tal manpower engaged in the sec tor As expected amongst

Volunteers the non-profession als far exceeded the professionals

with a ra t io of 90 10 but am on gst the pa id employees the

ratio was almost even as 5248

Table 67 Employment in NPO s hy L cation and Registration Status

bull FullTime bull

Rural 56049 27675 83724 5829 371376 377 205

Urban 108092 28778 136870 7727 447019 484 746

Total 164141 56453 220594 43556 8 18395 86 1951

Registered 158460 51384 209 844 22587 611819 634406

Unregiste red 5681 5069 10750 20969 206 576 227545

ProfessionalNon Professional

Professional 87555 17973 105528 6402 83384 89786

No n Prof 76586 38480 115066 37154 7350 11 772165

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

bull Paid Employees bull Volunteers

PAID EMPLOYEES amp VOL NTE EIS BY NPO A CTIVITY

The distribution o f paid employees and volunteers by areas of activity are presented

Il1 Table 68 A quick pe rusal of the table indi cates that Ed uca tion acco unted fo r the

top-most share of paid emp loyment (64 ) fo llowed by C om munity and Social Se rvice

(l 7) and Re lig ion (10 ) For Volun teers the three lead ing most areas of ope ra tion

we re Religion - 39 Sports and Culture -2 1(fn and Communi ty and Social Welfare

- 20

Table 68 Activity-wise Distribution of Employees and Volunteers

I

I I I Paid Employees Volunteers

( I) (2) (3) (4)

I Education 920 921 ( 22 956 141536(6416) 72153(837 ) ) Health 930931 7076(321 ) 14401( 167)

-) Religion 940 21651 (982) 337936(3921 )

4 Community

amp SocialSer Ice 941 942 37496( 1700) 174917(2029)

5 purts amp Culture 959 5481 (248) 183710(213 I)

6 Others 910 943 949 7354(333) 78834(915)

Total 220594(1()()OO) 86195H 10000)

figures Jl1 bracke ts are percen tage to totals g iven In the last row

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

ADJ STME TS TO FULL-TI IE EQU IVALE NT

With predomi nance or part-time employment it is im portant to kno w as to what

would be the fu ll time eq uivalent of part -time work pu t in by the persons engaged in

the sector The full-time equivalent of total em ploymen t is the variable which needs to be

con sidered if one is assessing the employment potent ial of the sector to the total economy

The survey schedule has sought information on the average number of vo lunteer day s

during one year and on average time spen t per day by part-time vo lunteers in the

organisatio n No such information has been solic ited for the part-ti me employees Since

most of the filled- in schedules of Maharashtra relating to time spent by part-time volunteers

were either left blank or had do ubt ful entries the task of converting part -time volunteering

time to full-time equivalent was also found to be di fficult Howe ver based on a number

of assum ptions and salvaging the scanty inform ation collected an average conversion factor

of 02 to be applied to the number of part-time volu ntee rs to get fu ll-time equiva lent

wa s use d In so far as paid employment was co ncerned it was ass umed that pa rt-lime

pa id employ ees worked on an average for ha lf a day on every working day Based on

the se procedures the adj usted full -time equi val ent employmen ts of pa id employment and

of voluntee r force have been given in Table 610 indicating adjusted total nu mber of

399603 persons as engaged in the sector

Table 69 f dju ted Estimate of umber of Per ons Engaged

Total I I

(I) (2) (3) (4) (5) (6) (7)

Rural 56049 I3R38 698 7 5829 74275 80 104 rban 108092 14389 122481 37727 89404 127131

Total 164141 28227 192368 43556 163679 207235

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

52 48

bull Paid Employees Volunteers

The employment scene as emerging from Table 69 now changes fro m the sit uation

in fe rred from Table 68 Parti c ular ly the number of full -time eq uivale nt 01 volunteering

work ha s come down steep ly to 207 lakhs fro m 8 61 lukhs T he full -t ime eq u ivalen t o f

paid employment has also wo rked ou t to 19 2 lakhs Thus the to ta l fu ll-time em plo yment

genera ted in the se cto r is 399 lakhs ( 192 +20 71 a khs ) Thus em ployment in the nonshy

p ro fit sec to r w ill be approx imately 2 11I of the total no n-agricu ltura l wo rke rs as per

200 I popula tio n ce nsu s T he to ta l non -agri cultural employment incl ude s ind us tri a l

employmen t as a lso e mp loyment in other sec tors where there ar e insi gnificant non -profi t

activ ities If only those sectors w here no n-p ro fit acti viti es are predomina nt ar e taken into

accou nt it is obvio us tha t the share of non -p rofit employment will go up co nsiderab ly

As per the estimates g ive n by the Directorate of Economics and Statist ics Go vernment of

Maharashtr a the State Domestic Product of laharushtra was Rs 145420 crores in 1998shy

99 at 1993-94 prices out o f which Rs 11 8585 cro res came from no n-agricultural sectors

T herefore by us ing the percentage o f non-profit sector employment as g iven by the NPO

su rvey with re sp ect to tota l non -agricu ltu ral workers it would appe ar th at a t least Rs

2500 crores wa s contributed by the non -profit secto r T his esti mate however far exceeds

from the estimates of abo ut Rs 1000 cro rcs as worked out from the tables on Rece ipts

and Expend itur e of the NPO survey

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

RECEIPTS or THE NO -PRO FIT SECTOR

Rece ipts co nstitute another index of the scale of operations of an NPO Table 6 10 gives

est imates of funds rece ivedgenerated by the NPOs in Maharastra over the three yea rs

viz 1997-98 1998-99 And 1999-2000 The main features of the es timates are

Y Total rece ipts of the NPO sector 111 Maharastra during 1997-98 was est imated

at Rs 869 bill ions The funds generated sho wed an increasing trend over

lime The sec tor was able 10 generate funds to the tune o f Rs 10 55

bill ions in the year 1999-2000 This implied an average growth ra te of

about 10 23 per year

Y Ave rage recei pts per NPO during the year 1999 -2000 were aro und Rs12

lakhs

Y Anal ysi s of receipts by broad grou ps of sources shows that a major portion

(53 in 199 9-2000) was from se lf generated source s Gran ts obtained were

about 24 Loa ns taken were about 13

Scl I ge ne rated funds form the most important element amo ngst various

sources of funding its share currently is about 53Lc of the total fu ndi ng

The th ree main components of se lf-g ene rated funds arc Com munity

contribution (24 Lb) Fees and serv ice charges ( 16) and Memb ership fees

(5 ) (R ef AIllex II)

G rants rece ived from Government and other agencrcs have bee n anothe r

predo minant so urce of fund ing in Maharastra The State Government has

co ntributed to the exten t o f about Rs23368 million during the year 1999shy

2000 Th is high figure is due to grants being given to sel f-managed private

sc hools and co lleges (Ref Allllex I )

Incidentally Indian I religious institutions have also contributed Rs122 millions

to the NPOs in 1999-2000

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

- -

----------

Table 610 Estimated receipt of fund s by ource (in Rs Iillions r

I I I I I I I II

Amount Amount

(1) (2) (3) (4) (5) (6) (7)

Sel f-Generated 44217 5087 48566 5213 55678 5276

Loans 14398 16 56 1454 5 1561 14117 1338

Grams ( I) 19802 22 78 20578 2210 25042 23 73

Donation (2) 8506 979 9468 1016 10692 1013

Total 86923 10000 II I II

(1) Foreign and Interna tion al grants were not reported at all

(2) Donations received from for e ign sources were estimated as Rs 3052 milli on

Loans 13

Self-Generated 53

6000 bull Self Generated

5000 - -shy 4000

3000 _ Grants

2000 _ _ _ _ _ _ bull bull _ _ bull _ _ _ _ bull bull bullbull Loans

1000 _ bull - bull - bull - bull - bull - Do nations

0 +-shy - - - - - --shy - - - - - - --shy - --shy - ----

1997-98 1998-99 1999-2000

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

More detai ls of componen ts of the sources of fu nds generated by the sector in

year 1999 - 2000 have been presented in a table at Annex II The importance o f the

most significant share of se lf-generated fun ds by the NPO sector (53 0) is often not

given the due importan ce by the policy makers Sec ondly voluntary contributions from

the co mmu nities the non profi t secto r seeks to serve at 4570 of the sel f - generated

funds need also be conside red appreciable Fees and Service Ch arges we re fou nd to be

another important source for generating income the item co ntributed J6 of the to tal

receipts which wa s almost 30190( of the se lf-generated funds Th e St ate Govt had

shouldered the largest share of Grants amounting to about Rs 23368 millio ns Funds

rcceived from fore ign sources in the form of do nations were estimated to be as low as

Rs 3052 million in 1999-2000 whi ch was only about 29 of the tot a l receip ts It

seems that e ithe r the NPOs rec eiv ing foreign fund s have not been adequately netted or

the units fall ing in the sa mple have not responde d properly

E PEI OIT lIU PI TTER

Th e esti mates of total expend iture broken down in to major grou ps of item s incur red by

the NP Os in Ma harastra during the years 1997 - 98 1998 - 99 amp 1999 - 2000 have

been presented in Table 611 It would be seen that the survey ha s es timated the tot al

expend iture incurred by the NPOs in the S tate at Rs 79l)81 millions in the year 1997shy

98 The figure rose to a sum of Rs 84644 m illions in the year 1998 - 99 and again

to Rs 101313 mill ions in 1999-2000 Thus the expenditures like receipts exhibited an

increasing trend over time Exp enditure estimates were margina lly low er tha n the receipt

estimates in all the th ree years On the whole the two sets of es timates appear mutua lly

cons istent A furt her perusal of Table 611 brings ou t that the two item s of expen diture

viz Salary and ot her Bene fits and Operating Expenses toge ther accounted for about

9 1 of the tot al ex penditure

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

Table 611 Estimated E penditure Oil lajor Item (ill Rupeeslilliolls )

I I

Amount

( I) (2) (3) (4) (5) (6) (7)

I alary and other be nefi ts 4874 - 6095 47145 55 70 56832 56 10 2 Operating expenditure 2484 1 3 106 2988 2 3530 35852 3539 3 Rent for assets not owned 526 066 67 9 (l80 66 9 066 4 Trave l 25 0 03 1 33 5 040 447 044 5 Administrati ve cos t 2982 373 3329 393 394 2 389 6 Interest paid on loans 9 1 0 11 260 03 1 146 0 14 7 Chari ty Donations 223 1 279 257 5 304 2728 269 8 Others 3 15 039 439 052 697 069

ITotal

FIXED ~SET~

Fixed assets possessed by the NP Os eg lands building machinery amp too ls and

transport equipm ent and other assets (o wned hired rent- free e ic) along with their

approximate value were the last set of item s related wi th the overall hea lth of the NPOs

on which the Survey attempted to co llect inform ation Table 6 12 presents the estimated

value by types of assets The tab le shows that almost a ll the NPOs had some fixed

asset or the other The present worth of all the assets owned worked out at at Rs 506

billions The overa ll average va lue o f assets per NPO was Rs 57 lakhs in Maharastra

Of the tot al present worth of these assets bui lding accoun ted for 56 (Rs 28 1345

mill ion) land for 29 (Rs 144907 mill ion ) and Mechi nery amp Too ls for about 2

(Rs 8 l57million)

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

Table 612 Fixed A ets (Estimated Value in million )

No ofNPOsValueof Assets

( I) (2)

I Total Number ofNPOs 88549

2 NumberofNPOs with any asset 88504 (9995)

3 Value of Assets (Rs Millions)

(i) Land 144907 (286)

(ii) Buildings 281345 (556)

(iii) Mach inery amp Tools 8157(16)

(iv) Transport Equipments 1071 (02)

(v) Others 70954 ( 140)

I bull 506434 (1000)

figures in brackets are percentage with respect to total gi ven 1Il the last row

One NP O in the sa mple did not report any ass et

DISTRIB TION OF POs BY E lPLOY IE T amp EXPE DIT URE GRO PS

Tables 6 13 and 6 14 present the di stribution of NPOs in Maharashtra by Paid

Em ployees and Expend iture -groups respectively As ma y be seen from the tables smallshy

size NPOs both in terms of employme nt and ex pendi ture arc very large in numbers as

compared to NPO s with medium or high scale of operations It is interesting to note that

there were about 52 NPOs which d id not hav e even a sing le paid employee and

another 22 which had j ust one paid employee The frequency-cur ve taper off steeply

with increase in employment-size Ho we ver it may also be noted that out of the total

number of NPOs 3393 NPOs (38) had J I to 30 paid employees and 822 NPOs

(10) had 31 or more paid employees Almost similar distribution is seen by expenditureshy gro ups If Table 6 14 is presented with three bro ad groups as Small (0-0 5 Rs lakh)

Medium (gt05 and upto 50 Rs lakh) and large (gt50 Rs lakh ) the picture emerges as

such

bull Smaller NPOs with expenditure lip to Rs50000 per annum Constitute 80 of the

total number of NP Os in Maharas htra

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

bull About 14 of the total number of N POs are medium-sized NPOs with e pend iturc

between Rs 50 000 to 5 lakhs

bull Bigger NPOs with annual ex pend iture abov e Rc5 lakhs are only about 6 of the

total number of NPOs

Table 613 Distribution of POs hy umber of Paid Employees

Percentage

(I) (2) (3) (4)

1 0 45743 517

2 I 19518 220

3 2 -5 15600 175

4 6 - 10 3473 40

5 II - 30 3393 38

6 31 and above 822 10

7 All classes 88549 100

31 ampabove ~ 11 -30 ~

I 6-10

I 2-5

1

I o

o 10000 20000 30000 40000 50000

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

Table 614 Di tributio ll of NPOs hy Expenditure-Groups

Frequency Percentage

(1) (2) (3) (4)

I 0-1 74991 847

2 1-5 8556 97

3 5-10 3529 40

4 10-20 904 10

5 Above 20 569 06

88549

Above 20 a 10-20 ~

I 5-10 bull

I 1-5

0-1

10000 20000 30000 40000 50000 60000 70000 80000

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

EXPLORING THE NON PROFIT SECTOR IN INDIA Some Glimpses from Maharashtra

VII LES ~O S LIAR T FOR F TURE SURVEY

T he planni ng an d conduc ti ng o f the first e ve r st at isticall y des igned sample survey o n a

complex subject l ike No n-Pro fit O rganisa tio n sector ha s ce rta inly pro vid ed valuable expe shy

rience with useful les sons for futu re su rveys o f similar nature The lessons learn t pa rt icu shy

la rly with reference to Maharaslura surve y arc h ig hlig hted in th is sec tio n While fo rmu shy

la ting the lesso ns it came to ligh t tha t wh ereas ce rta in survey cleme nts needed to be

im p ro ved centrally for all the state-su rveys there we re a lso some surve y aspec ts whi ch

need ed to be ta ck led at the State- level

( I) The survey ha s brou gh t to light structu ral co mplexities of the NPO se c tor

T he extreme he terogeneit y of the units unde rlines the nee d for pre-s tra tifica shy

tion of the sec to r in to segments like the small the mediu m and the large

an d de vi s ing appropriate sa mpl ing st rategi es for each of them

(2) A lot o f pre lim inary work need s 10 he done to un de rstand the spec ial cha rshy

ac teri s tics o f di ffe re nt segments and if po ssible to delineate the ir bou nda shy

ne s

(3) An im mediate task co ncc rn mg the la rge segme nt w h ich is the economic

backbo ne of the sector is to co llec t a ll the list s and d irec to ries of such

un its sc ru tinize the m and prepare a C onso lidated D irec tory of Large NPOs

free from d upl icate ent ries Su ch list s an d Direc to ries whi ch are now availshy

abl e wi th va rio us agencies arc parti al and incomplete and are e ith er subshy

j ec t-specific or a rea -sp ec ific Hard and concert ed work will be requ ire d for

conta cti ng the agenc ies and collecting these lists Although laborio us this is

an essentia l ta sk wh ich needs to be ta ke n up seri ousl y

(4) T he present ap proach o f identi fying NPOs through ho usehold list ing pro ved

to he c irc um locu to ry No doubt the main purpos e of ho use l is ting wa s to

coll ec t non -a g ricu ltura l em ploy ment dat u Howeve r if no n-ag ric ultura l ern shy

plo y ment data a rc not essentially req ui red much time and e ne rgy can be

sa ved by mak ing only int en s ive e nqu ir ies in the sample ab ou t the ex istence

or NPOs T he time saved can be use d for covering more sam ple units

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

(5) The app roach in ex ploratory exerci se of di vid ing the 20 th Century into six

periods and selecting one year from each per iod had pro ved inadequate for

ne tting large uni t Th is aspect need s to be kept in view in planning surshy

veys based on registration data

(6) For surveying the large segment the Consolidated Directory sugges ted 111

(3) above can be used as the frame

(7) Operationally there is need for complet ing the pl an ning for all aspects of

the survey right from desig n to release of results before launching the fie ldshy

wo rk In part icula r software for data entry and data anal ysis should be

ready before co mpletion o f field work and should be common for all the

States in which the survey is to be co nd ucted

(8) A re- thinking seemed to be necessary to modi fy the definitions of a Non shy

P rofit Organisation in the Ind ian context to meet the needs of all official

and non-official users Similarly definitions of some of the basic terms eg

Volun teer requi red to be reconsidered

(9) The fie ld-wo rk of the Maharash tra survey left much to be desired It has

once again been de monstrated how ad vantages o f decentral ized field-work

co uld be lost if not adequately bac ked by Centra l coo rdi nat ion and supershy

vis ion CS O s Econo mic Census1998 was another glaring example Po ints

which emerged from the Maharashtru surv ey were Need for intensive trainshy

ing and refre sher courses for Trainers by a strong Central Team Introducshy

tion of a well -knit programme of Central Inspection and Supervision Selecshy

tion of sui tabl e survey and re ference periods and Devising measure s to

control prob lem s of non-response

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

N E 1

SAMPLE ELE TIO IN VI HARASHTRA VILLAGE TOWN (2) (3)

Ol-Mumbai Mu mbai ( 128)

02- Pune Pune (25)

03- Arnravati Achal apur (7) (0 J) Bhatkal 0 1 Dharnori

02 Checharwadi

(02) Chandu Bazar 01 Deurwada 02Asegaon 03 Kharala 04 Karan ju Buhiram OSBomla 06 Hushangbad 07 Kurankhed 08 Ganoja 09 Kodori 10 lmarnpur II Shahapur jawla 12 Murad pur

Chandu bazar (4 )

04shy Nasik Nasik ( 14)

05- Kolhapur Kolhapur ( 13) (0 I) Karvir 01 Shi ye

02 Walivade 03 Mudsingi 04 Chikali 05 Girgaon 06 Dindnevli 07 Upawade 08 Mandare 09 Donwadi

(02) Aj ra 0 1 Aj ra 02 Kowada 03 Bahirewadi 04 Dabheel

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

06- Nagpur Nagpur (24) (0 I) Kamptee OI l alakhcd

02 Bclon a 03 T huaon 04 Mhasora 05 Khcdi Gowarg 06 Khai gaon 07lndora 08 Naigaon 09 Mogra 10 Pimpal Gaon II Ra nwadi 12 Gumgaon

(02) Na rkhed 0 1 Khapa 02 Bina 03 Chi choli 04 Yarkardi 05 To radi Bk 06 Wararnbha

07- Gadchiroli Gadchiroli (4) (0 1) Sironcha 01 S iron ch a Ry

02 Ankisa Mal 03 Rangay Pall i 04 A mde li 05 So nnur Mal

(02) Ch amorshi 01 Chamorshi 02 Ghot 03 Bhendala 04 Talodhi Mokasa 05 Fokllrdi 06 Lakhampur Bori 07 Anadgram 08 Dotkllii 09 Khandala 10 Navtala Tukum II Rekhegaon 12 Walsara

Note Figure s in brackets in columni3) are number ojUFS blocks in the Sample Towns surv eyed

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

SOURCE

I Self generated Fees amp Se rvic e C harges Sa le o f Product amp Other Business Income Membership Fees Interest Inco me Community Voluntary Contribution Rental Income Other Sources

A E II

RECEIPTS

55678(53 ) I 6805( 16)

146 1( I ) 487 1(5) 1549( I )

25444(24) 2329(2) 32 19(3)

II Loans ]4J17(13)

Natrional Sources lnternatrion al Sources Other So urces

13005( 12) 0(0)

11 12( I )

III Grants

Central Government State Govern ment Local Bodies Oth ers Indian Sources (Total) Bilateral Agencies Internat ional Agencies Others Foreign Sources (Total)

25042(24)

59( I ) 23368(22 )

28(0 ) 1056( 1)

25042(24) 0(0) 0(0)

0(0) 0(0)

IVDonations

Indi vidual Corporat ions Foundations Others Indian Sources (Total) Oth ers (Foreign) Foreign Sources (Total)

] 0692(10)

75 11(7) 0(0) 0(0)

129(0) 764(7)

3052(3) 3052(3)

TOTAL ] 05529(100)

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

REFERE CES

Bombay Law House (2003) The Bom bay PublicTrusts Act 1950

Central Statistical Organisation (2000) Sta tistical Pocket BookIndia

Director of Census OperationsMaharashtra (2002) Census of India200 I

Gall Omvedi (1974) Re-invent ing revo lution Indias new soc ial mov ement

Gokhle J ayash ree (1979) Dalit Panther movement

Govt of Maharashtra (1999) Director of Eco nomics and Statistics Handbook Of Basic Statistics

International Institute for Popular Science (2000) Report on NFH S-2 Maharashtra

Jain Jagadish Chandra (1947) Life in Ancient India-As depicted in the Ja in Canons

Kochhar and Jain (1987) Format ion and Managemen t o f a Society

Ministry of Finance Go vtof India (2001-2002) Econom ic Survey

National Sample Sur vey Organisation (2002) Report on 55lh round (J 999 -2000)

Office of the Registrar General and Census Commission er (2002) Census ofIndia 2001

PRIA (2000) Defining the Sector of India Voluntary Civil or Non-Profit

PRlA (2001) Historical Background of the Non-Profit Sector in India

PRIA (2001) Leg al Framework for Non-Profit Inst itutio ns in India

Punekar S D amp Golwalker Alka R (1973) Rural Change in Maharashtra

Sarkar ladunath (1959) A history of Dasnami Naga Sa nyasis

Sarkar Jadunath (1973) Shi vaj i and his time

Walkar Benjamin (1983) Hindu World An encyclopedic surv ey of Hindi ism

Warder A K (1970) Indian Budd hism

Zelliot Eleanor (1983) From Untouchables to Dalit

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

iElVIllERS OF THE ADVISORY CO IllITTEE

I Dr Swapan Garain 9 Mr Ajay Mehta Tata Institute of Social Sciences Executive Director Deonar Mu mbai National Foundation for Indi a

New Delhi 2 Dr Ganesan Balachander

Representative 10 Mr Murry Culshaw Ford Foundation Murry Culshaw Adv isory New Delhi Services

Bangalore Karnataka 3 Ms Priya Vishvanathan

Representative in India 11 Mr Jagadananda Charities Aid Foundation Member Secretary New Delhi Centre for Youth and

Social Development 4 Mr Nicholas Mcki nlay Bhubaneshwar Orissa

Chief Executive Officer Aga Khan Foundation 12 Ms Indu Ca poor New Delh i Director

Centre for Health Education 5 Mr Noshir Dadrawala Training and Nutrition

Exec utive Sec retary Awareness (CHETNA) Centre for Advancement of Ahemadabad Gujarat Philanthropy Mumbai Maharashtra

6 Mr Joe Mad iath Executive Director Gram Vikas Berhampur Oris sa

7 Mr Harsh Mander Country Director Action Aid New Delhi

8 Ms Pushpa Sundar Executive Director Indian Ce ntre for Philanthropy New Delh i

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate

PRIA RESEARCH TEAM HOPKINS CORE TEA (

I Dr Rajesh Tandon I Dr Lester M Salamon

President PRIA Director

Centre for Civil Society Studies

2 Dr SS Srivastatva Johns Hopkin s University

Principal Researcher Baltimore USA

Projec t Director

3 Mr SK Gupta

2 Mr Leslie C Hems

4 Mr Ranjit Kundu Director

Centre for Voluntary Sector Policy

5 Mr Aniruddha Mishra University College ofLondo n

London UK

6 Mr Partha Saha Coordinator Data Collection Strategy

7 Mr Chandra She khar Joshi 3 Dr Wojciech So kolows ki

Centre for Civil Society Studies

Johns Hopkins University

Baltimore USA

Data Manager

4 Dr Andrew Green

Centre for Civil Society Studies

John s Hopkins University

Baltimore USA

From the Soc iety for Soc io-Economic Coordinator Legal Aspects

Studies and Serv ices Kolkata

5 Ms Mimi Bilzor

Centre for Civil Society Studies

John s Hopkin s University

Baltimore USA

Communications Associate