Frequently Asked Questions About Starting an NGO in India

May 12, 2023

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Starting an NGO in India can be a rewarding experience as it can help address the social and environmental challenges faced by communities. However, the process of starting an NGO in India can be quite complex, involving legal and regulatory compliance, fundraising, and program implementation. In this blog, we will discuss the step-by-step process of starting an NGO in India.

Table of Contents

Step 1:

Identify the Need and Purpose Before starting an NGO, it is essential to identify the social or environmental need that the NGO aims to address. Once the need is identified, you need to determine the purpose and objectives of the NGO. The purpose and objectives should be clearly defined and must align with the legal framework and regulatory requirements.

Step 2:

Choose a Suitable Legal Structure There are several legal structures available for NGOs in India, such as Trusts, Societies, and Section 8 Companies. Each legal structure has its own set of rules and regulations. You should select a legal structure based on the purpose and nature of your NGO, as well as the scope of activities you plan to undertake.

Trusts are registered under the Indian Trusts Act, 1882, while Societies are registered under the Societies Registration Act, 1860. Section 8 Companies are registered under the Companies Act, 2013, and are specifically meant for non-profit organizations.

Step 3:

Name Your NGO The name of your NGO should reflect its purpose and vision. It is important to ensure that the name you choose is unique and has not been registered by any other organization.

Step 4:

Register Your NGO Once you have chosen the legal structure and name for your NGO, you need to register it with the relevant authority. For Trusts and Societies, you need to register with the Registrar of Societies in the state where the NGO will be based. For Section 8 Companies, you need to register with the Registrar of Companies.

Step 5:

Obtain Necessary Permissions and Approvals After registering your NGO, you need to obtain various permissions and approvals from government authorities. These may include getting a PAN card, opening a bank account, and registering for tax exemption under section 12A and 80G of the Income Tax Act.

Step 6:

Develop a Board of Directors and Governing Body To ensure the effective functioning of your NGO, you need to establish a Board of Directors or Governing Body. This body should consist of individuals who are committed to the NGO’s mission and have the skills and expertise required to manage the organization effectively.

Step 7:

Develop a Strategic Plan A strategic plan outlines the goals, objectives, and activities of your NGO. It also includes a budget and fundraising plan. It is essential to develop a comprehensive strategic plan to ensure the smooth functioning and sustainability of your NGO.

Step 8:

Start Fundraising Fundraising is an essential part of running an NGO. You can raise funds through individual donations, corporate donations, grants, and fundraising events. It is important to have a diversified fundraising strategy to ensure financial stability.

Step 9:

Implement Your Programs and Activities Once your NGO is registered, and necessary approvals and permissions are obtained, you can start implementing your programs and activities. It is important to regularly monitor and evaluate the impact of your programs to ensure that they are achieving the desired outcomes.

Step 10:

Hire Staff and Volunteers To implement your programs and activities, you may need to hire staff and recruit volunteers. You should identify the roles and responsibilities required to run your NGO and hire people accordingly. Volunteers can be a valuable asset for your NGO, helping to reduce costs and increase the reach of your programs.

Step 11:

Establish Partnerships and Collaborations Establishing partnerships and collaborations with other organizations can help you leverage their resources and expertise to achieve your NGO’s objectives. You can partner with other NGOs, government agencies, corporations, and individuals to expand your reach and impact.

Step 12:

Ensure Transparency and Accountability Transparency and accountability are critical for the success of your NGO. You should maintain proper records of all financial transactions, program activities, and outcomes. You should also regularly report to your donors, stakeholders, and governing bodies on the progress of your programs.

Step 13:

Build a Strong Network and Reputation Building a strong network and reputation is essential for the sustainability and growth of your NGO. You should participate in relevant events, conferences, and forums to network with other organizations and individuals. You should also actively engage with your donors, stakeholders, and beneficiaries to build trust and credibility.

Step 14:

Adapt to Changing Circumstances The social and environmental challenges faced by communities can change over time. Your NGO should be flexible and adaptable to changing circumstances. You should regularly review and revise your strategic plan and programs to ensure they remain relevant and effective.

conclusion

starting an NGO in India requires a clear understanding of the social or environmental need you aim to address, choosing a suitable legal structure, obtaining necessary approvals and permissions, developing a strategic plan, fundraising, and implementing programs and activities. By following these steps and building strong partnerships and networks, your NGO can make a significant impact in society.

Other Related Blogs: Section 144B Income Tax Act

frequently asked questions about starting an NGO in India:

Q.What is an NGO?

An NGO or non-governmental organization is a non-profit organization that is independent of government control and works towards the betterment of society or the environment.

Q.What are the legal structures available for NGOs in India?

There are three legal structures available for NGOs in India – Trusts, Societies, and Section 8 Companies.

Q.How long does it take to register an NGO in India?

The registration process for an NGO in India can take anywhere from 15 days to several months, depending on the legal structure chosen and the state in which the NGO is based.

Q.What is the minimum number of members required to register an NGO in India?

The minimum number of members required to register an NGO in India depends on the legal structure chosen. For Trusts, a minimum of two members is required. For Societies, a minimum of seven members is required. For Section 8 Companies, a minimum of two directors is required.

Q.How can I raise funds for my NGO in India?

You can raise funds for your NGO in India through individual donations, corporate donations, grants, and fundraising events. You can also apply for tax exemptions under section 12A and 80G of the Income Tax Act to encourage donations.

Q.What are the compliance requirements for NGOs in India?

NGOs in India need to comply with various legal and regulatory requirements, including maintaining proper records of financial transactions, filing annual returns with the relevant authorities, and obtaining necessary approvals and permissions.

Q.Can foreign nationals start an NGO in India?

Yes, foreign nationals can start an NGO in India. However, they need to comply with certain additional requirements, such as obtaining necessary permissions from the Foreign Contribution Regulation Act (FCRA) department to receive foreign donations.