NGO / Trust Registration

Overview

A non- government organisation working for the greater good of society, an NGO. Whosoever organisation is intending to work for the societal welfare need to do NGO Registration.

In India, Non-Governmental Organization (NGO) can be registered under any of the three legal structures:

1. Trust (Indian Trusts Act, 1882)
2. Society (Societies Registration Act, 1860)
3. A. Section 8 Company (Companies Act, 2013)

The Process of NGO Registration — A Step-by-Step Guide

1. Registering as a Trust (Charitable Trust)

   Appropriate for: Social causes, fund raising and worship.

   Process:

   Decide a Name: Ensure that it is unique and not similar to an existing trust.

   Draft a Trust Deed:

   Minimum of 2 trustees (maximum is unlimited).

   The purpose, property, and rules of the trust.

   Prepare a Trust Deed on a Stamp Paper:

   Stamp duty varies by state.

   Visit Sub-Registrar Office:

   Provide evidence: ID/address proof of trustees.

   The registration fees also vary from state to state.

   Receive the Registration Certificate:

   Takes around 7-15 days.

2. Registering as a Society

   Suitable for: Educational, scientific, charitable and literary societies.

   Process:

   1. Decide on a name: Make sure it isn’t already used.

   2. Prepare MOA & Rules & Regulations: Minimum 7 members required.

   Overarching objectives, governance, and operational details. Overarching objectives, governance, and operational details.

   Filing of Papers to Registrar of Societies:

   ID/address proofs of members.

   Packing list, affidavit of service, declaration.

   Pay the Registration Fees:

   Varies by state (₹500–₹5000).

   Receive Registration Certificate

   Takes around 30-60 days.

3. Registering as a Section 8 Company

   Appropriate for: Non-profits aiming for charity work that is good for business

   Process:

   1. Get Digital Signature Certificate (DSC): Needed for business directors.

   2. Director Identification Number (DIN) Application: Minimum 2 directors needed.

   3. Name Approval from MCA:

   Submit SPICe+ Form via MCA portal.

   Filed for incorporation MOA & AOA ROM.

   End with PAN, Aadhaar and address proof.

   4. You are eligible to receive your Certificate of Incorporation: Usually takes 15-30 days.

Post-Registration Compliance

PAN & TAN Application

Teach 80G and 12A Registration | (Tax exemption.)

FCRA Registration (if required for foreign funding)

Advantages of Registering a Trust

• Trust society can receive land from the government here.
• In about half of the states, there is no statutory law that regulates Public Charitable Trusts in India. Nevertheless, Public Trusts Act is existent in many states – including, Madhya Pradesh, Maharashtra, Gujarat and Rajasthan.
• A Trust registered under the Trusts Act may practise" Govt. Regd.” or ‘Regd.’
• They receive a number of tax exemptions like Income Tax etc.

• Benefit of 80G certificate under Income Tax Act
• Trust can raise White capital for Building construction.
• Entertainment Tax / Service Tax etc exemption

Why Is NGO Registration Required?

here are some key reasons for the importance of NGO registration-

1. In the business world, achieving legal recognition and credibility is crucial for growth and sustainability.
2. You can register it as an NGO, and it is a legal person which helps in easily gaining credibility among donors, government bodies, and the public.
3. It gives a sense of legitimacy to the NGO's work, creating transparency and accountability

Government Grants & Funding Eligibility:

Many schemes and funding opportunities by the governments are only for registered NGOs.

Grants and Funding by the Government Eligibility

Many more schemes and funding have been available for Registered NGOs only.

Ministries, departments, and international organizations can only issue grants to properly registered NGOs.

Count of Tax Exemptions (80G & 12A Registration):

Under the Income Tax Act, 1961, registered NGOs are eligible to apply for Section 12A and 80G certifications for tax exemptions.

80G certified NGOs have contributed to higher donation levels as the donations made to the 80G-certified NGOs are tax-deductible for the donors

Bank Account Opening Potential:

To get funds legally, a registered NGO will preferably open a bank account in its name.

It is mandatory for an NGO to submit its registration certificate, PAN and other legal documents to open an account with a bank.

Legal Liability Protection:

If there is an NGO registered, it functions as a separate legal entity, so its members are not liable personally.

It also helps you avoid legal issues in the event of litigation or monetary liabilities.

Foreign Contributions (FCRA Registration):

Registered NGOs are eligible to obtain a license under FCRA (foreign contribution regulation act) to receive funds from foreign entities.

It is illegal to receive donations from abroad without FCRA approval in India.

Well-Organized & Systematized Operations:

Registered NGOs has a prescribed system of operation and byelaws.

It provides corporate governance, accountability, and legal compliance.

Collaboration With Other Companies Will be Easier:

Registered NGO: Corporate firms usually first prefer for working with registered NGO under their CSR (Corporate Social Responsibility) initiatives.

Legal registration makes collaboration with other NGOs and international agencies easy.

Benefits of NGO Registration in India

In India, registering an NGO (Non-Governmental Organization) will provide you with several benefits. Check out the top ten advantages of NGO registration:

Legal Recognition & Credibility:

A registered NGO is recognized as a legal entity, making it easier to establish credibility with donors, government bodies, and the public.

It provides legitimacy to the NGO’s operations, ensuring transparency and accountability

work for Government Grants & Funding:

Some useful pointers to help NGOs in India make a decision– Registration as an NGO allows the organisation to be eligible to apply for a government grant, CSR funding and also international donations.

Funding agencies prefer to have funding only to registered organizations due to accountability.

Tax Exemptions & Economic Benefits:

Tax exemptions on income are granted to NGOs registered under Section 12A & 80G of the Income Tax Act.

Tax benefit for donors for contribution to an 80G registered NGO as well.

Account Opening Capability:

A registered NGO can open a dedicated bank account in the organization’s name.

This facilitates the transparent management of flows of funds and the carrying out of legal transactions.

Protection Against Personal Liability:

Members shall not be personally liable if the NGO is of Trust, Society, or Section 8 Company type.

NGO is a separate legal person.

Based on FCRA Registration Foreign Funding Access

Only registered NGOs can apply for an FCRA (Foreign Contribution Regulation Act) registration.

This enables the NGO to get foreign funds legally.

More Collaboration with the Government & Corporates;

Government sectors and Corporate CSR program that can partner with NGOs.

NGO Registration is Needed to Appeal to Companies as Corporates often decides to do CSR with only Registered NGOs.

Common types of NGOs in India:

NGOs (non-governmental organizations) in India are actively engaged in many fields, such as the environmental sector, social sector, educational sector, health sector, and development sector organizations. There are numerous ways to classify NGOs in India but broadly by their area of focus, structure, and types of activities. Below are some of the common types of NGOs present in India –

Charitable NGOs

They are primarily concerned with welfare activity and the well-being of disadvantaged segments of society.

They may engage in food, clothing, shelter, and medical assistance, etc.

For instance, Goonj (works on the basic needs for urban & rural communities)

Developmental NGOs

These developmental NGOs want to bring about sustainable social change through education, health, rural development, gender inequality, and economic empowerment.

They do projects for community development most of the time on the ground level.

Environmental NGOs

They work towards environment protection, conservation of natural resources, sustainable development, and climate change.

Which includes wildlife conservation, afforestation, pollution control and raising environmental awareness.

a. Greenpeace India (works on international environmental issues).

Human Rights NGOs

We use our position to protect the civil, political and social and economic rights of marginalized groups around the world.

Perhaps, they may even choose to represent the causes for women, gender, children, minorities, refugees, and other groups facing risks and vulnerability.

Ex: Amnesty International India (works on global human rights issues)

Health-Centric NGOs

These NGOs work towards bettering public health, tackling diseases, creating awareness about the healthcare system, sanitation and many more such issues including access to drinking water.

They emphasis too on health awareness, vaccination, maternal and child health, and AIDS awareness.

Give examples: Doctors without borders (offers medical care to the needy, mainly in emergencies)

Educational NGOs

These NGOs work to enhance education, together with providing educational opportunities for children residing in rural areas, and also literacy, vocational and skill development.

They are also trying to decrease the dropout rate and improve education quality.

Give examples: Teach for India (works to ensure that all children from low-income communities have the opportunity to attain an excellent educ Relief NGOs

Relief NGOs

mainly work in the field of natural disaster and humanitarian crisis response and provide life-saving operation like food, water and shelter, and medical care as soon as possible during an emergency.

They work in the post-disaster situation of e.g. earthquakes, floods, or conflict.

Eg-Indian Red Cross Society (Emergency relief in times of disaster)

Cultural and Artistic NGOs

Cultural heritage and art preservation These are a set of non-governmental organizations that emphasize the preservation and promotion of cultural heritage arts and traditions. They also focuses on cultural exchange, education and creativity.

E.g. Swaraj Sansthan (Art forms & crafts based organization)

Advocacy NGOs

Another type of advocacy NGOs is the NGOs that change enforce systems like policies and laws.

This usually involves lobbying, public campaigns, research, and legal activism to promote particular causes such as women, environment, or access to justice.

Volunteer-Based NGOs

Most of the activities in these NGOs, such as fundraising, community outreach and event management, are managed by volunteers.

They weave the efforts together through a community-oriented approach, leveraging the local elements that can empower the community.

Example: Rotary International (connects volunteers to tackle the social causes)

Social Enterprises (Business Model based NGOs)

These are NGOs in practice, but they all operate under a self-sustaining model, where money is made through the sales of products or services to finance their social projects.

For example: SELCO India — Provides solar energy solutions with sustainability focus

Ways to Raise Funds for NGOs

NGO fundraisers have to raise funds for an NGO to continue its operations and fulfill its mission. Here are different ways to raise money with different fundraising methods that NGOs can adopt to generate funds-

Donations from Individuals

Ask for one-time or recurring donations from people.

This should be a simple donation page on your website that allows easy payment such as UPI, credit/debit cards, bank transfer, etc.

Utilize social media and give your crowdfunding center stage.

Personalized emails and messages to potential donors

Corporate Social Responsibility (CSR) funds

A lot of the organizations donate a part of profit to NGO under CSR Act (Companies Act, 2013 )

Apply to companies, whose CSR funding fits your NGO mission.

Engage with corporate partners and share impact reports.

Crowdfunding Platforms

Raise small donations from many people using Ketto, Milaap, ImpactGuru, GiveIndia, GoFundMe etc.

Use images and videos backed by true stories to create an emotional campaign that resonates.

For example, Spread your crowdfunding campaign on WhatsApp, Instagram, Facebook and LinkedIn.

Government Grants & Schemes

The central and state governments have grants open for NGOs in the field of education, healthcare, women empowerment, rural development, etc.

Some government schemes:

NITI Aayog NGO Darpan (compulsory for government grants)

Grants under National Health Mission (NHM)

Ministry Schemes of Social Justice & Empowerment

Funds of Ministry of Women & Child Development