What Is An NGO And How Does It Work?

Starting and running your NGO can be a very fulfilling thing to do. However, it requires more than just a good heart and idea. To run a successful NGO, not only do you need to be good with marketing your cause, but you also need to be wary of the legal implications involved. Therefore, starting an NGO requires adequate legal planning and a lot of hard work and a desire to help people. In many ways, running an NGO requires just as much skill as running a company, and sometimes, even more. Indeed, in this article, we will be taking a look at what an NGO is, and how it works.

What is an NGO?

A Non-Governmental Organisation, better known as an NGO, is an association that is registered with the government and works for the upliftment of society. However, the association has a clear and definite program or cause, which it supports. Indeed, the causes an NGO supports may be cultural, religious, social or educational in nature. NGOs are commonly called Non-Profit Organisations as times by the general public.

What steps to follow when starting an NGO in India?

1. First and foremost, decide what cause you want your NGO to work on and back-up.

2. Draft clear statements regarding your NGO’s mission, vision, and objectives.

3. Decide on a good Board of Directors who you feel will be able to lead the NGO properly.

4. Try to include like-minded people so that the team works together at all times.

5. Draft appropriate Memorandum and Articles of Association

6. Decide on a good name, and then register your NGO

7. Once you have undertaken the NGO registration, start trying to get funds for your NGO

8. Grow your connections and try to build a wide and broad network

The features of a Non-Governmental Organisation in India

• NGOs have a particular purpose or cause that they support.
• NGOs are voluntary groups, created by like-minded people who want to help serve society.
• They function as autonomous bodies, having only a little or no governmental interference.
• NGOs have their own set of rules, regulations, and policies, depending on their cause.
• NGOs are not profit-making or profit-sharing companies. Rather, they help in empowering and bettering our society.
• They generate, create, and manage their funds via contributions and donations from the public.

Which associations can act as a Non-Governmental Organisation in India?

1. A Trust composed of one or more people can sign up as an NGO, as per the Indian Trusts Act, 1982.

2. Any company, club or association consisting of professionals can act as an NGO by registering under the Companies Act, 1956.

3. It is to be noted that any society of people that aims to better society can sign up as an NGO as per the Societies Registration Act, 1860 by approaching the Registrar of the Societies.

4. Moreover, any statutory body which hands out memberships to persons based on their stature.

5. Also, any Charitable Trust can sign up as an Non-Governmental Organisation under the Charitable Endowments Act, 1920.

6. Any other group, society or association that aims to uplift the society.

In what ways does NGO registration Occur in India?

The term NGO serves as an umbrella term that covers all legal entities that work with philanthropic and charitable aims. As per Indian laws, a Non-Governmental Organisation can function as either a Trust, Section 25 Company or Society. Non-Governmental Organisation registration occurs in India, in the following ways:

• Trust Registration
• Society Registration
• Section 8 Company incorporation

Trust Registration-

1. Formed when the owner of a property agrees that all the benefits from the property will be used for the upliftment of society

2. The main aim of trust creators is to use the assets they have to empower society

3. Indeed, does not normally have fixed beneficiaries

4. Irrevocable without court or legal intervention

Documents Trust Registration

electricity/ water bill

Identity proof of two members

Society Registration-

• Has valid Memorandum of Association, rules and other regulations
• Is registered with the Registrar of Society/Commissioner of Trusts
• May alter their MOA or change their objectives from time to time
• Indeed, all changes must reach the Registrar annually
• Termination via a clause in their Bylaws

Documents for Society Registration

Name of the society

Address proof

Identity proof of nine members

Memorandum of Association

By-laws of the society

Section 8 Company –

Requires valid MOA and AOA f

Registration comes under the Registrar of Companies, of the Central Government

The process similar to the incorporation of Public/Private Limited companies

Must conform to annual compliance measures other companies fulfil

Documents for Section 8 Company:

Company name

Address proof of the office

Identity proof of Directors

Memorandum of Association

Articles of Association