Asian Alumni Association The Opportunities and Challenges of Alumni Networking Arun Balamatti Executive Director, AME Foundation Bangalore ARTES 1998-2000 Presented at Policies and Strategies to Mitigate Climate Change and Energy Poverty in South East Asia and China Hanoi and Halong Bay, Vietnam 5-9 October 2009

Asian Alumni Association Idea first mooted in Bali, November 2006 Discussed again in Nepal, May 2008 The first forward step in action - individual volunteers identified from a few Asian countries to study the proposition in their country context This presentation presents ideas on setting up the AAA in India as an NGO/I-NGO Inspiration – FAEM, Nepal

Asian Alumni Association The Extraordinary Purpose of the AAA Exchange of professional experiences eminently initiated by SESAM Institute - generous support from the DAAD – Bangkok (2002) - Bonn+Flensburg (2004) - Bali (2006) - Nepal (2008) - Vietnam (2009) Next step: To take this initiative forward - bring together the competencies and professional experiences of large number of alumni One institutional umbrella

Asian Alumni Association The Extraordinary Purpose of the AAA An ideal platform for the alumni to exchange professional experience on RE & RD issues in the interest of the Asian rural communities Exclusive and excellent career option for the alumni to develop organic relationship among themselves and with the alma mater Opportunity for the seniors to guide RE professionals A place of pride for SESAM for having given birth to a transnational and cross-cultural institution A wonderful site for social networking An opportunity not many dream of

Asian Alumni Association AAA in India – The Process & The Pitfalls Starting a NGO/NPO, in India or elsewhere, can be, a lengthy time consuming process Difficulties can be minimised with preparation

Asian Alumni Association LOCATION Could be in any Asian county The key: Political stability & the legalities India: Reasonably stable political atmosphere, simplistic legalities for NGO, but not necessarily for an I- NGO Somewhat conservative policy on international development cooperation, deliberate attempt to encourage local initiatives NGO – Yes, I-NGO – Not really…

Asian Alumni Association Type of the organization Many classifications of NGO/NPOs as determined by individual country's laws and regulations In India non profit / public charitable organisations can be registered as Trusts, (the Indian Trusts Act) Societies, (the Societies Registration Act, 1860), or A private limited non profit company, under section-25 (the Companies Act, 1956) Setting up of an I- NGO the same as any other NGO in India

Asian Alumni Association Type of the organization NGO/NPO in India exist independently of the state; are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity; produce benefits for others, generally outside the membership of the organisation; and are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members. What do we want? Lucrative profession? or RE based rural livelihoods as means of our livelihood?

Asian Alumni Association Type of the organization NGO/NPO in India The Income Tax Act gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors may claim a rebate against donations made. Foreign contributions to non-profits are governed by FC(R)A regulations & Home Ministry ‘Income’ to be applied only for charitable purposes

Asian Alumni Association Mandate/ scope of operations Individual operational NGOs vary enormously according to their purpose, philosophy, sectoral expertise and scope of activities NGOs are classified according to whether they are more relief or development-oriented; religious or secular; stress service delivery or participation, and whether they are more public or private-oriented AAA-Development Oriented, public, secular, service organisation

Asian Alumni Association Mandate/ scope of operations In the context of the World Bank-financed activities, national or I - NGOs are normally contracted to deliver services, design projects or conduct research Nepal discussion – Activities fall broadly under delivering services, designing and executing RE projects and undertaking research and evaluation studies Add professional & cultural exchange

Asian Alumni Association Membership, type, roles Critical that a new NGO/NPO is properly registered with the public authorities of the country Even more important to 'register' with its target community - in terms of ensuring acceptability, building trust, programme and project effectiveness, and bringing about real change Destination: Poor & the poverty in South Asia

Asian Alumni Association Membership, type, roles First establish a Board of Directors or an Advisory Board and develop the organization's mission Board members have trustee & legal responsibility for the actions & operation of the organization. There are minimum levels of involvement required of board members in organizational and operational management Indian Alumni Association with international advisory group?

Asian Alumni Association Membership, type, roles: Foreigners as Board Members: Society - The Societies’ Registration Act, 1860 does not prohibit a foreigner to be a member of the Board Certain case laws say “even if all members of the Board are foreigners then also the society shall remain Indian if it is registered in India” However, the society shall not be Indian if all the members are Indian but it has been registered in a foreign country Similarly, in case of Trust, no prohibition on foreigners becoming Trustees ‘Yes’ on paper, many ‘No’s in practice

Asian Alumni Association Handling international assignments FCRA  Registration is a must For FCRA Registration the organisation must have been registered for a period of not less than 3 years Till then it can receive  foreign  funds by getting a prior permission from the Ministry of Home Affairs Getting FCRA Registration shall be difficult with foreigners on Board!

Asian Alumni Association Handling international assignments Inter charity donations IT Act: Income applied for activities outside India is not eligible for exemption unless the following conditions are satisfied: The organisation is a Trust registered before 1.4.1952 or it is engaged in the promotion of International Welfare, in which India is interested, Central Board of Direct Taxes has by general or special order granted the exemption Prime driver: Serving the purpose for which the organisation is established

Asian Alumni Association CONCLUSION India can be a favoured location for setting up AAA However, the NGO status seems more a workable proposition than an I-NGO Unless there are other more favourable country locations, AAA as an Indian NGO seems practical Indian NGO – Yes International NGO – Needs more homework & expert consultation

THANK YOU