Amid concern over some NGOs misusing foreign aid, the US is preparing an online searchable database containing a vetted list of transparent and accountable Indian non-government bodies so that philanthropists can safely donate funds to them.

"And by matching a list of certified Indian NGOs with potential American donors, we aim to create an online philanthropy market place," said Robert Blake, the US Assistant Secretary of State for South and Central Asia.

The database would facilitate tax deductible donations to organisations in India, Blake said while delivering keynote address to the Washington DC annual gala of the American India Foundation.

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The State Department is working with a non-profit group called GuideStar India to create the online tool, he said.

Last month, India had ordered an inquiry against at least 10 NGOs following reports that they were providing funds received from abroad for fanning political unrest in the country.

Government officials said the inquiry has been ordered after the home ministry received information that funds to the tune of crores of rupees received by these NGOs have been given to social activists to stage protests and resort to other agitational programmes against government policies thus creating unrest.

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The inquiry had been ordered amidst media reports which suggested that Denmark plans to provide funds to outfits that rally against Indian government policies.

GuideStar India provides information of over 1000 NGOs in India in an easy to search fashion to help users connect quickly with organisation(s) working in the area of their choice, the organisation said on its website.