The Hindu : Andhra Pradesh / Hyderabad News : NGOs feel the heat of global meltdown

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Sunday, Apr 12, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

NGOs feel the heat of global meltdown

Swathi.V & K.Vijaya Bhaskara Reddy

Those relying on individual donations are the worst hit
Corporate and international agencies are also cutting the aid

HYDERABAD: Making both ends meet is a struggle these days for Dhamma Mitra Madhavarao, a Buddhist social worker running ‘Adarana Home for orphaned and needy children’ at Aasmangadh. Monthly expenditure on the home sheltering 40 boys exceeds Rs.35,000 and Mr. Rao gets only about Rs.20,000 at the maximum by way of donations. “I’m running from pillar to post to collect the rest. This was not the situation a few months ago when I received generous donations from corporate donors and IT employees. Emboldened by such philanthropy, I increased the strength from 20 to 40. Now I cannot deprive the children of food and education,” laments Mr. Rao. The home serves orphaned and destitute children and provides them English medium education. Voluntary service initiative, which experienced a sudden surge following the IT boom and for a moment appeared to outweigh the State-run welfare programmes, is definitely on the wane now due to the economic slowdown. Compassion reduced to struggle for existence, the IT professionals are forced to beat a retreat and tighten their fists. “Nowadays wherever I go, I encounter only apologies. Nobody is interested in charity. Some of my donors sadly lost their jobs too. The number of donors got reduced to 25 from the earlier 100,” says Mr. Rao. Many such NGOs in the city and elsewhere are facing the heat of global recession. “Earlier, I would collect amounts between Rs. 70,000 and Rs. 1 lakh in the first ten days of the month. Now it is halved. I am back to where I was seven years ago, when I started the institute,” says P. Purnachandra Rao, the founder of ‘Needy Illiterate Children Education’ school at Narsaraopet. The status of international funding agencies is no different. Mazhar Hussain, the Director of COVA informs that two major funding agencies organising finances for different projects across the State are in dire straits, with contributions coming down to 25 per cent of what they were. Corporate Social Responsibility, the oft-repeated phrase in corporate circles, too is sinking into oblivion. “Our funding from the parent company has dwindled by half. Reputed foundations affiliated to corporate giants have stooped to sacking their employees and cutting down their increments,” shares head of a reputed CSR foundation.

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