Voluntary Organisations – BMS Notes

A variety of terms, including nonprofit organisations, NGOs (non-government organisations), third sector organisations, and civil society groups, are sometimes used interchangeably with the phrase “voluntary organisation,” which designates a particular kind of organisation. These phrases all indicate somewhat varying levels of intensity. For instance, “an organisation whose objective is something other than producing a profit for its owners” is the standard definition of a nonprofit. Usually, offering services is the aim (Anthony & Young 1990). The concept places a strong emphasis on the nonprofit nature of volunteer groups, but it makes no distinctions between state-run or government organisations and other organisations that may not be profit-driven. Similarly, although the word “NGOs” is often used to refer to major multinational nonprofit organisations, it may also technically apply to private for profit organisations and volunteer groups (which nonetheless may earn a profit from some aspects of their operations, such as, for example, the Bangladesh NGO BRAC).

As the name suggests, the word “voluntary” highlights the fact that people voluntarily create these groups, which gives them autonomy and freedom from the market and the government. The phrase is often used to describe the existence of volunteers within nonprofit organisations, despite the fact that professional staff members predominate in many voluntary organisations. Lastly, these groups are often described as being a part of civil society or the third sector, and as being independent of the market and the government. According to some academics, the inability of the state to meet the demands of a minority group or the failure of the market to provide a low-cost service may result in the development of voluntary groups (Hansmann 1987). Across fact, there are service-oriented charities in a wide range of industries, including social services, health, education, sport and entertainment, and religion.

More recent research has focused on the advantages of nonprofits, such as the fact that volunteer groups serve as a “school for democracy” or a means of social capital expression via mutual support within the community (Putnam 2000). Not all volunteer organisations, but a large number of them are, are part of social movements that provide fresh, group-based solutions to problems related to the environment, economy, or society (Melucci 1988). The diverse and intricate structure of voluntary organisations has also been highlighted by international scholars, making it challenging to pinpoint a set of traits that function as fundamental requirements for all of these groups.

The sizes of voluntary groups vary widely. In any country, the vast majority is tiny and depends solely on the volunteer work of its constituents. These are grassroots groups that, especially in traditional village cultures, may have deep traditional roots but lack a formal legal framework. Some volunteer organisations are quite big, employing several hundred paid staff members in addition to thousands of volunteers on a national or worldwide scale (Salamon et al. 1999).

Important Goals and Roles of Voluntary Organizations

Voluntary organisations are essential in democratic, socialistic, and welfare societies because they serve a variety of purposes for the well-being of their constituents, the advancement of the nation, and the cohesion and unity of the society and nation.

I Humans are social beings by nature.

He has an innate desire to act in groups. In order to live a fuller and richer life, people voluntarily organise clubs and associations for their own benefit as well as the benefit of others. This is shown by the voluntary associations created to further professional interests, social services, cultural and recreational activities, etc.

(ii) A democratic society based on pluralism needs a large number of autonomous, voluntary non-governmental organisations to act as a barrier between the people and the government and stop it from gaining monopolies in a range of industries. Voluntary groups act as power breakers by involving individuals in admirable endeavours and preventing the government from concentrating its power. The voluntary group’s power sharing prevents the government from taking a monopoly approach to service organisation.

(iii) By allowing people to participate in the management of their own private organisations, they help them understand the principles of political action and groupings.

(iv) Coordinated volunteer work supports people and organisations with a range of interests, including political ones, strengthens the sense of national cohesion, and advances democracy’s participatory nature.

(v) The state lacks the people and financial resources necessary to provide for all of its residents’ demands. Thus, it may be accountable for meeting their bare need. Through local fundraising, volunteer groups may fill gaps in the community and improve quality of life.

(vi) Compared to state organisations, voluntary groups serve the state significantly more effectively in areas that are solely within their purview but for which they have less funding.

For instance, while the state is ultimately responsible for education, the number of educational institutions run and managed by nonprofit organisations far exceeds that of government institutions, and the former also outperform the latter in terms of service quality due to their adaptability, spirit of innovation, and other attributes.

The state is once again accountable for providing health care, and this is also the case. However, compared to government-owned hospitals, hospitals supported by philanthropic and benevolent organisations are renowned for providing greater care and attention.

(vii) As a result, voluntary groups may take on new tasks, work in uncharted territory, expose social injustices, and address needs that have gone unfulfilled or neglected in the past. They can even play a role in the domain of officially recognised governmental obligations. They may serve as spies and explorers of the emerging revolution in development.

They are capable of serving as reconnaissance teams. They may be early adopters of change, anticipating it and taking steps to lessen its unpleasant effects. They may contribute to growth and development, which will eventually enable them to assist the government in expanding its operations into new regions and increasing the national minimum.

(viii) They offer avenues of engagement for individuals who prefer not to engage in politics and government but instead form volunteer organisations, lending their skill, experience, and spirit of service to society in order to effect changes that will better meet the needs and aspirations of those involved and enhance lives.

(ix) They serve as a stabilising force by uniting individuals with groups that are not driven by politics and do not care which political party gains power. Instead, they are above party politics and focused on other aspects of nation-building, which promotes national integration and keeps attention on non-political issues.

(x) They also carry out the duty of informing the populace at large and its members about the government’s policies and programmes regarding their welfare, rights, and obligations. They are also capable of providing constructive criticism regarding the governor’s incorrect policies and actions, without fear and with courage of conviction, forcing the government to make the necessary adjustments to take into account the opinions of the people who will likely be impacted by such policies and actions, as demonstrated by the programmes pertaining to scheduled tribes and environmental conservation and preservation.

(xi) The effort to satisfy the unique needs of specialised interests and particular populations, such as the elderly, the disabled, women, children, etc., whose needs cannot be sufficiently satisfied by the state due to budgetary constraints. Two nonprofit organisations that work on the welfare of the elderly are Age-India and Help Age.

The Indian Council of Child Wellbeing works to advance the welfare of children. Working in the area of women’s welfare is the Indian Curricle for Women Welfare. The welfare of ex-servicemen is a concern of the All India Ex-Servicemen Welfare Association. In a similar vein, many volunteer organisations exist to safeguard the rights of the communities they represent.

(xii) Because they can recognise the needs of people, groups, and communities that are close to them and create programmes that are appropriate to meet those needs, as well as make necessary adjustments based on lessons learned from their implementation processes, involve people in the process, raise the necessary funds, and win the trust and cooperation of the public through human warmth, sympathy, and touch—qualities that bureaucrats in governmental organisations lack—they are in a better position to function to their own satisfaction as well as that of their clientele.

In summary, the primary functions of voluntary organisations include putting the fundamental right to freedom of association into practise, identifying the needs of people, groups, and communities and launching projects and programmes to address those needs either independently or with government funding; sharing state responsibility for meeting citizens’ basic needs, filling in gaps in the community, preventing government monopolies; giving people with a strong sense of duty and dedication the chance to organise themselves to advance public welfare; educating citizens about their rights and obligations and informing them about government policies and programmes

Voluntary Organization Types

If you want to take on the responsibility of owning, operating, and managing a neighbourhood playground, recreation area, sports club, or other similar facility, it’s critical that you weigh all of your organisational options, take into account the various opportunities, risks, and liabilities, and seek independent advice when necessary.

A community organisation may be established under one of many legal frameworks. Choosing the best kind of organisation is crucial since each structure has pros and cons that affect how far the asset may be utilised, grown, and safeguarded in the future.

An Unincorporated Association, a Trust, a Limited Company, a Community Interest Company (a business for social entrepreneurship), and an Industrial and Provident Society are the many forms of organisations that may be used (a co-operative for social enterprise)

An Association Without Corporate Status

This strategy could have served as the foundation for the first effort to save a building or area. It usually involves a small number of people with immediate objectives and is suitable in situations when hiring employees or purchasing property is not the plan. Establishing an Unincorporated Association may be done quickly and affordably. No additional agency is required unless an organisation is registering as a Community Amateur Sports Club (CASC) or requesting charity status. Unless legal counsel is sought for the drafting of a constitution, there are no expenses to pay.

An unincorporated association, on the other hand, is essentially just a group of people and does not have its own legal existence. Individuals would have to hold any assets or contracts on the group’s behalf, and any legal action brought against the organisation would really be against the individuals, holding them individually accountable. You must be extremely clear about the dangers involved, since liability problems may be quite complicated.

An Assurance

To administer land and property and receive funds for a specific purpose for the benefit of a larger community, a trust might be established. They provide a legal connection between the individuals who donate funds or property, the beneficiaries—those who stand to gain from the trust—and the trustees, who are often three persons. Trusts may be easily and affordably established. Although trustees might choose to report on a regular basis and engage with a larger group of individuals, trusts are not democratic organisations since they typically do not have a membership structure. Trustees are not shielded from personal accountability and may be held personally accountable for agreements made on the trust’s behalf. Nonetheless, you might get insurance to provide some monetary security.

A Company With Limited Liability

An increasingly common option for nonprofit and community groups is a corporate form.

In the event that you plan to manage personnel, real estate, contracts, and/or substantial sums of money, it is ideal. An organisation that is incorporated is a firm limited by guarantee. This indicates that it is a different legal entity from its members. This legal framework restricts directors’ culpability in the event of bankruptcy, with the exception of circumstances involving carelessness or recklessness. The primary limitation of this legally flexible form is the inability to issue shares.

Firm legislation must be followed, and you will need to register the company with Companies House.

Community-Based Enterprise (CIC)

A community interest company has additional characteristics such an asset lock, a dividend cap, and a community interest test in addition to being restricted by guarantee or share issuance. Although the legal structure emphasises public benefit above private profit, it offers more flexibility than charity status.

Every CIC must identify the community (which may include all inhabitants of a certain region) that is to benefit from any revenues generated by the business; the CIC regulator must also authorise this. The dividend ceiling restricts the amount of profit that private investors may withdraw from the company, while the asset lock allows capital gains to be allocated to the designated community.

The Provident and Industrial Societies (IPS)

A commercial organisation that functions as a cooperative for the good of its members or the larger society is known as an IPS. Typically, share capital is used to support an IPS, but limited firms get this funding in a different way. The fixed value of the shares is unaffected by fluctuations in the organization’s worth. The only instrument that can issue shares at a minimal cost is an IPS. Purchasing a share verifies membership, and regardless of the amount of shares possessed, decisions are made by one member, one vote, with a cap on the total monetary worth of shares that one person may own. The Financial Services Authority oversees IPSs (FSA).