Do you want to work hard towards the betterment of society? Then the thought of operating an NGO may have crossed your mind.
Running an NGO entails like-minded people getting together to build support and love within the community. But, just like any other business, it also includes logistical work such as keeping up with the paperwork, arranging for funds, making gst payment online, and managing donations via bookkeeping.
However, the essential requirement for running a non-profit organisation is the sheer desire of doing welfare for the people. If you have the drive, then you can easily take care of other technical elements.
Here are some tips and information to help you get started on your philanthropic journey. But first, let us understand what an NGO is.
What Is An NGO?
An NGO (Non-Government Organisation/Non-Profit Organisation) is generally aimed towards social welfare with a plan to support socially disadvantaged sections of the society.
The operation of NGOs relies on donations and charitable contributions or makes use of funds offered by the government. The establishment is mostly composed of volunteers and involves little to no monetary compensation for the service and work done.
Non-profit organisations can range from local institutions to nation-wide projects. They may aim towards providing temporary relief or empowering a group of people by giving them information.
Steps To Run Your NGO
Deciding The Purpose, Vision And Mission
The primary step is to decide the goal of your organisation. From children’s rights and domestic violence to poverty and animal cruelty—the section of society you want to help will pose as the purpose for the functioning of the NGO. If your vision is crystal clear, you can formulate the roadmap for further operations.
Gathering A Board Of Members
Begin networking to find people who have the right skill set for the type of work you want to do or have some experience doing charity work. It doesn’t matter if you seem like an unlikely group of people with little in common: the only binding element your team needs is the passion for helping society.
Based on the number of people, you may register your charity as:
- Trust: Minimum of two members required with no limit on the maximum number of members
- Society: Minimum seven persons with no upper limit restrictions
- Non-profit/Section 8 companies: There is no constraint on the number of members.
Preparation Of The Memorandum
The memorandum, also known as the “articles of incorporation,” is the primary requirement which you need to fulfil for the documentation process to start. It involves deciding bylaws, which are different kinds of rules for the organisation, partners, or the board of directors.
The following information is of significance when preparing your memorandum:
- NGO Name
- Vision and mission
- Clearance statement of its being non-profitable
- Ownership details
- Office addresses/area of service
- Board members and their designations
- Membership criteria
- Liabilities and assets
- Capital involved and source
- Revocability of NGO
- Codes and conducts to be integrated
- IDs of the involved persons
- Residential and office address proofs
- Rent agreements (if required)
- No objection certificates
- Income tax PAN and passport
- At least two directors, out of which one is expected to be an Indian citizen
- Two shareholders
Requirements For Organisations Registered Under Section 8
You can register your organisation as Section 8 under the Companies Act, 2013. You will require the following documents, apart from those already mentioned before:
- A name and logo
- Director Identification Number (DIN), acquired after registration of the owner(s)
- Digital Signature Certificate(DSC) done by the owners and board members
- Memorandum with the member’s approval
- Ownership proof of the office
- NOC from the landlord along with the rental agreement (if the property is rented)
- INC-9 by subscribers declaring to MOA
- DIR-12 for the appointment of the directors
- DIR-2 for consenting to be directors
- An affidavit from the board for not accepting any deposits
- Letter for exemption of taxes
In case of any staffing requirements, the non-profit organisation has to follow strict labour laws. They also have to offer some details of the employees, which include dedicated working hours and conditions of work.
After your NGO has been successfully approved, you can begin looking for donors and volunteers and register your non-profit under GST. Once your gst application status is confirmed, you can claim tax exemption.
The NGOs in India are working at large with the help of government policies to serve the oppressed. As a relatively new non-profit, it might be useful to connect with other organisations that share the same goals as you.