By Varda Mehrotra (Executive Director, FIAPO)

Empowerment of activists, and NGOs – the voices that speak on behalf of animals – is particularly critical just now during a time of a pandemic, civil disturbances within the country, economic downturn, and unemployment a crackdown on civil society. We face significant challenges. – and of course, potential new laws making CSR funds no longer applicable to trusts and societies, tax-exempt status of NGOs now requiring renewal, and significant challenges to receiving foreign funds (another 900 NGOs lost their permit on Monday).

For example, if you have been receiving at corporate funding, then new draft rules are set to clamp down on CSR activities. The proposed rules would not allow trusts and societies to undertake any CSR activities. The government wants to restrict such spending only through a company itself. Or if you rely on foreign funds, t no specific tax exemptions have been extended to CSR expenditure per se. The Finance Act, 2014 also clarifies that expenditure on CSR does not form part of business expenditure. This is to say that they don’t have any particular benefit of saving tax by making donations.

The government has cancelled the FCRA licenses of about 20,000 NGOs, and there has been a 40% decline in the inflow of foreign funds from the year 2015 to 2019, as per a report prepared by Bain and Company.

If you are looking at corporate funding, no specific tax exemptions have been extended to CSR expenditure per se. The Finance Act, 2014 also clarifies that expenditure on CSR does not form part of business expenditure. This is to say that they don’t have any particular benefit of saving tax by making donations.

Individual donations, too, will be impacted, now that 80G will have to be renewed. And in case you missed it – it gets even more worrisome – your 12A tax exempt status will also now need to be renewed. Section 80G is applicable for exemption from tax, made to a specific fund or institution.  One of the conditions applicable for allowing deduction u/s 80G is that the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business. Therefore, 80G deduction does not apply to CSR expenditure.

Losing funding, is the quickest way to lose a voice for animals.

If you haven’t already started thinking about how to change your functioning to become more resilient, think now. Are you reliant on foreign volunteers who may not be able to come to India? Or foreign CSR funding? Is your only source of raising funds based outside your area of work/impact? Do you have enough number of supporting members? What sources of volunteers and funds will you have when these get taken away?

Especially if you are a registered NGO – ensure your compliance is complete. If you need help with this and if you are a member of FIAPO, please reach out to us so we can support you.

Lack of people and lack of funding is also a significant concern for many as we move forward with the changes in law that will significantly impact the movement. It’s time to start thinking of new ways of raising funds and getting support by setting up clinics for animals, animal grooming facilities, all-plant-based canteens or tiffin services or alternatives workshops, online stores having plant-based goodies and merchandise on sale and more. Merchandise – such as calendars, mugs, printed and eco-friendly T-shirts, newsletters, magazines, stationery items such as notebooks and pens, informative booklets and literature related to compassion, and plant-based recipe booklets and more. In today’s day and age having a brick-and-mortar store is only a huge added overhead cost- but that’s where technology and the internet swoop in! Creating an online store is easier and more achievable, and is accessible to a much wider audience. With the help of digital marketing and social media promotions, a digital store can get the advertising it requires to reach out to the right target audience.

What you do, depends on your area of work – Welfare of Animals Goa is an excellent gaushala and sells cow-dung and cow-urine related products. CUPA, Bangalore runs an excellent clinic for pets to help fund free treatment for their rescues. Welfare of Stray Dogs, Mumbai regularly hold concerts, garage sales to raise money. All of these, typically not only raise much needed funds, but also awareness. Funds can be raised for animals, by not just relying on generous donors and philanthropists but also on services we can create and offer.

So, if you haven’t already started thinking about how to change your functioning to become more resilient, think now. Merchandise – such as calendars, mugs, printed and eco-friendly T-shirts, newsletters, magazines, stationery items such as notebooks and pens, informative booklets and literature related to compassion, and plant-based recipe booklets. In today’s day and age having a brick-and-mortar store is only a huge added overhead cost- but that’s where technology and the internet swoop in! Creating an online store is easier and more achievable, and is accessible to a much wider audience. With the help of digital marketing and social media promotions, a digital store can get the advertising it needs.

Speaking up for animals requires us to be strategic and to think long-term. Start planning now.

If you are a registered NGO – ensure your compliance is complete. Ensure your administrative and financial systems follow the necessary labour, tax laws. If you need help with this and if you are a member of FIAPO, please reach out to us so we can support you.