By

Swetha

Hamsini

Muthumanikandan K

MA.HRM-DG Vishnav College

A non-governmental organization (NGO) is

any non-profit, voluntary citizens' group

which is organized on a local, national or

international level.

A non-governmental organization (NGO) is a

citizen-based association that operates

independently of government, usually to

deliver resources or serve some social or

political purpose.

Innovative approaches and, if necessary, to

take risks.

Flexible in adapting to local situations and

responding to local needs

Good rapport with people and can render

micro-assistance to very poor people

Ability to communicate at all levels, from

the neighborhood to the top levels of

government.

Recruit both experts and highly motivated

staff

The degree of participation in program

me/project design.

Restricted/constrained ways of approach to

a problem or area.

Dependence on outside financial resources

Reduces cooperation between agencies,

seen as threatening or competitive.

Charitable Orientation-Needs of the poor -distribution

of food, clothing or medicine; provision of housing, transport,

schools etc

Service Orientation- Provision of health, family

planning or education services in which the programs are

designed by the NGO

Service Orientation- Self-help projects where local

people are involved particularly in the implementation of a

project by contributing cash, tools, land, materials, labour etc.

Empowering Orientation- The aim is to help poor

people develop a clearer understanding of the social, political

and economic factors affecting their lives, and to strengthen

their awareness of their own potential power to control their

lives.

Community-based Organizations- These can

include sports clubs, women's organizations, and neighborhood

organizations, religious or educational organizations.

Citywide Organizations- Its Include organizations such as

the Rotary or lion's Club, chambers of commerce and industry, coalitions

of business, ethnic or educational groups and associations of community

organizations.

National NGOs- Its Include organizations such as the Red Cross,

YMCAs/YWCAs, professional organizations etc. Some of these have state

and city branches and assist local NGOs.

International NGOs- Redda Barna and Save the Children

organizations, OXFAM, CARE, Ford and Rockefeller Foundations to

religiously motivated groups.

Memorandum and Rules & Regulations in Duplicate duly signed by Minimum Three persons (Each page on bottom).

Ownership Proof of Registered Office. (Electricity Bill/Sale Deed/ GPA/Water Bill etc.)

Residential/Office address Proof of the all members of the Society. Such as Voter ID/ Telephone Bill/ Electricity Bill/Pass Port/Driving License etc.

NOC from Owner of premises on Rs.10/- Stamp Paper.

Affidavit from President on Rs.10/- Stamp Paper.

List of Desirous person should be signed by all members of the society.

Desirous persons or the persons subscribing the name to the Memorandum should not be (in any case) less than seven. If it is proposed to give All India character to the society there must be minimum of eight different persons from different States of Indian Union to the Memorandum.

State Level Society: Requirements A suitable name for organization.

Charitable purposes.

Seven initial members to form the organization.

Two Members (President - Treasurer or Secretary -Treasurer).

All India Level Society: Additional Requirements

At least nine initial members to form the organization.

Two Members (President - Treasurer or Secretary -Treasurer) form one state.

Other Seven Members from other seven different states.

In general, trusts may register for one or more of the

following purposes:

Relief of Poverty or Distress

Education

Medical Relief

Provision for facilities for recreation or other leisure -time

occupation (including assistance for such provision), if the

facilities are provided in the interest of social welfare

and public benefit

Societies are governed by the Societies

Registration Act 1860, which is an all-India

Act. Many states, however, have variants on the

Act.

According to section 20 of the Act, the types of

societies that may be registered under the Act

include, but are not limited to, the following:

Charitable societies;

Societies established for the promotion of science,

literature, or the fine arts,

For education; and

Public art museums and galleries, and certain other

types of museums.

The Indian Companies Act, 1956, which principally governs for-profit entities, permits certain companies to obtain not-for-profit status as "section 25 companies." A section 25 company may be formed for "promoting commerce, art, science, religion, charity or any other useful object.“

A section 25 company must apply its profits, if any, or other income to the promotion of its objects, and may not pay a dividend to its members. At least three individuals are required to form a section 25 company.

The application must include copies of the memorandum and articles of association of the proposed company, as well as a number of other documents, including a statement of assets and a brief description of the work proposed to be done upon registration.

To promote the concept of charity towards the poor and

the needy, the Indian government has been regularly

encouraging people to donate and this donation can also

be claimed as a deduction under Section 80G.

To encourage people to donate, the government also

allows for income tax deductions under Section 80G for the

amount which has been donated. The amount which has

been donated by a person is allowed to be claimed as a

deduction under Section 80G, at the time of filling his

income tax return

How to Apply for 80G Exemption Certificate in India?

Income Tax department issues these certificates for tax exemption on donated money.

What is the exemption under 80G?

Exemption under section 80G gives rebate to a donor on the amount he

donates to an organization that has 80g certificate. If the public charitable

organization (NGO) has 80G certificate then the donors of that organization

would not need to pay tax on the 50% of the donated amount.

How to apply for 80G exemption?

Exemption under section 80G is applied on a form called 10G. This form can be

downloaded from Income Tax department’s website.

Validity of 80G Exemptions?

Income tax department issues 80G certificate only for a specific period

(usually 1-3 years). After expiry, 80G exemption must be reapplied for and

renewed.

(Update (June 2014): Now Income Tax department is issuing 80G certificate for lifetime. You would no

longer need to get it renewed.)

Condition’s for getting 80G exemptions?

NGO should not have any income which is not eligible for exemption. For example, business income. lf, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.

Bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than the charitable objectives mentioned in the Trust Deep or Rules of Association.

NGO should not be working for the benefit of particular religious community or caste.

NGO maintains regular accounts of its receipts & expenditures.

NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 25 of the Companies Act 1956.

Trustees or governing body members are not drawing any undue benefits from NGO funds.

Documents required for registration of 80G certificate?

Dully filled in Form – 10G for registration u/s 80G registration

Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head)

NOC from landlord (where registered office is situated)

Copy of PAN card of NGO

Electricity Bill / House tax Receipt / Water Bill (photocopy)

Evidence of welfare activities carried out & Progress Report since inception or last 3 years

Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years

List of donors along with their address and PAN

List of governing body I board of trustees members with their contact details

Original RC and MOA /Trust Deed for verification

Authority letter in favor of NGO Factory

Any other document I affidavit / undertaking I information asked by the Income Tax department

When can you apply for 80G exemption?

Exemption certificate u/s 80G can be applied for

just after the registration of NGO is completed.

Where is 80G to be applied?

80G can be applied for at the office of

Commissioner of Income-tax (Exemption) having

jurisdiction over the institution.