The launch of an NGO needs more than just capital. It needs hard work, dedication and a willingness to support others. Starting and managing an NGO is almost like managing a business, except that you have to be transparent. You must strive for the well-being of society without expecting any benefit as you will first opt for Section 8 Company Registration in India.
NGOs are organizations that typically operate to support other causes or a target population’s welfare. Because they operate in the non-profit sector, their priorities and modus operandi are often somewhat different from for-profit organizations. To achieve their goals, NGOs need a practical approach right from the conceptualization point. Also, there are laws and regulations laid down by India’s government and provincial governments. Here’s a quick step-by-step guide to starting your own Indian NGO.
Decide the cause and mission of your NGO
The first move is to mention the cause the NGO supports. From women’s rights, child rights, climate-saving, it can be everything. Draft a concise summary of your objective that represents its intent, objectives, target group and priorities.
Set up the board of Directors/members
The board of directors and representatives would naturally be responsible for overseeing the NGO. Have the same minds, citizens with love and social welfare spirit and good citizens to become part of the body’s organization. You do need financial advisors, technicians, and individuals with knowledge of legal procedures. The number of founding members or their supporters is not limited.
Get your NGO registered
Once all documents are ready and the fee is paid, you can register your NGO under either of these Actions:
- Societies Registration Act (Member societies must have at least seven members). A community of seven or more people may form a society. The creation is easy (but the registration process can take a little longer than that of trust) and less costly than that of a trust, but also gives greater regulatory flexibility.
- Indian Trusts Act (A minimum of two people are required in the Charitable Trust, there is no limited membership). An NGO can be registered as a Public Charitable Trust in some provinces in India. There is no Public Charitable Trust Act at the national level. It should be remembered that the Indian Trusts Act 1882 implies private trusts that are legally regarded as a lucrative body.
∙ Companies Act (a non-profit organization can be registered with the Organization Registrar under section 8 of the Companies Act.). The Societies Registration Law of 1860: Companies Act 2013: A non-profit society established for the advancement of art, science, industry, religion or charity, but its members cannot be reimbursed for dividends. Both revenue and gains, if any, will be used to support the company’s objectives. It is an NGO or NO that has limited company rights but does not use the terms “Limited” or “Private Limited.”
Know which organization to choose for NGO from a Trust, Society, or Section 8 company for NGO. The three forms of organizations listed above are eligible for registration under Section 12A of the 1961 Revenue Tax Act and for registration, the tax obligations for their income are excluded.
Start getting funds
It’s time for you to start raising money to run the NGO once your NGO has registered. This can be achieved through internal outlets such as sales, gifts and subscription fees. And external sources such as government funding, private organizations or international sources. Capitalization through domestic sources (member dues, purchases, subscription fees, donation, etc.) or government, private or international grants. The Foreign Contribution Act (FCRA) 2010 controls the transfer of international funds.
Create a network. Network with other NGOs, experts, media houses, government agencies, and businesses and search for collaborations. NGOs’ key source of survival and prosperity is through partnerships. Link with future friends, believe in the cause you endorse. Until registering the NGO, you must have a promoter’s body in place, which will be the first governing body to register, and will be responsible for all the NGO’s activities and decisions before the new body is formed in compliance with the laws, as applicable. The governing body will participate in all strategic issues, including strategic planning, financial management, human resources, and networking.
It is recommended to have a thorough plan in place before aiming to start an NGO in India. Most of the grassroots organization does a great job at the core level but fail to leverage their efforts for the betterment of their NGO. The key is to form a legal structure around your activities so that it also gets easy to undertake public activities on a large scale. Especially in times like these when a large part of the underprivileged section of society is starving and deprived of basic amenities due to COVID-19. If you or anyone whom you know is involved in offering help to people suffering from consequences of COVID-19, ask them to get started with forming an NGO that offers long-lasting benefits.