Friday, January 20, 2012

Start an NGO to Make Money

An non-governmental organization (NGO) is a body formed by people and it is independent of any government role. NGO's are mostly formed for a good cause like charity, environment,education,etc. But today it is the most corrupt form of making money.

I personally recommend that if you do start an NGO, then do serve the purpose for which you have started it. As per Wikipedia, there was an estimate some time back which showed that in the year 2009 there were 3.3 million NGO's in India, which implies that one NGO for less then 400 Indians. This clearly shows the lacuna and money making capability of starting an NGO.

The best part is that any income generated in an NGO is tax free (as per my knowledge of Indian tax system, other countries might differ). People start an NGO on every possible calamity, and starting asking for money to serve a noble cause. But in the end, they gulp the majority of the money.

If you had noticed anytime, that whenever there is an earthquake, tsunami, or floods ( irrespective of there location of origin and occurrence). People from several NGO's approach you asking for donation and help for the relief work to be done.

I remember that when there was a major earthquake hit in Gujarat on 26th  Jan 2001. At that time i was in Delhi. At least 3-4 NGO groups approached my house in a span of a week asking for donation for helping the Gujarat victims. The issue is that you want to help, but do not know which ones are genuine. Finally I paid the first NGO with a help amount, and refused the remaining.

The modulus opeandi is usually:-
  • Gather a team of 15-20 boys, who can do field work and approach people. If they are able to hire girls then even better, as they are much better in convincing, and people often pay them the relief money.
  • Whenever any calamity struck in part of the world, then these guys activate there group and ask everyone for relief money as donation.
  • People are usually softhearted and so pay some amount for help.
  • These NGO's usually eat up the entire amount, or the majority of it.
My humble advice is that if you start an NGO, then please do serve the cause for which you have started the NGO. You may take the money for operating the NGO, but still make sure to spend the remaining for the main cause.


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