The not-for-profit sector in India

Historical development

Antecedents

Voluntary action in India is an age-old tradition. In the context of organised voluntary action, the social reform movements of the nineteenth century are important milestones.

In the early twentieth century the idea of voluntary action and of philanthropy was expressed most forcefully through Mahatma Gandhi's initiation of 'Constructive Work' the focus of which was village reconstruction. A significant proportion of voluntary action during this period was channelled into mass mobilisation and political action in the struggle for independence.

The early years after independence

The first twenty years after independence was a period when social-reform-based voluntary action tackled the emerging needs of nation building. However, by the early 1970s it was evident that the government's 'trickle-down' approach to development had not been successful. It was at this stage that some not-for-profit organisations began to experiment with alternative and integrated rural development.

Modern development

A number of new initiatives emerged from not-for-profit organisations in the late 1970s.They engaged in more focused work with target groups such as landless labourers, women and scheduled tribes, and began to specialize in certain aspects such as health, agriculture, education and literacy.

The notion of voluntary action was widened to include training, research, advocacy, documentation and legal aid. The sector benefited from increased professionalism and the influx of trained social workers. As the sector grew in size and scope, regulatory and financial issues pertaining to good governance, accountability and best practices gained importance.

In 1985, the Government of India's Seventh Five-year Plan acknowledged the important role that not-for-profit organisations could play in the country's socio-economic development. The federal government identified a number of fields relating to development and empowerment in which these organisations would be extremely effective, especially at the grassroots level.