What is a Non-Governmental Organisation (NGO)? Explained

Introduction
Meaning and Definition of Non-Governmental Organisation
Laws Related to NGO
Formation and Registration of a Non-Profit Organization in India:

Introduction

Non-governmental organisations (NGO) are a well-established and commonly used phenomenon in human society's history. The drive behind this extensively established group of NGO’s are that they are one among and address the challenges encountered by our fellow brethren who is underprivileged, marginalised, disenfranchised, minorities and deprived of inclusion in the mainstream society. No one ever pays attention to what they have to say. NGOs active in all sphere of social life. They proven to be more effective, efficient, innovative and responsive to challenges affecting the people at the grassroots level. Even now NGO’s succeed in reaching out to the most unreached individuals across the globe. There are many unmet needs, concerns and challenges of Persons with Disabilities in the developing countries like India. The contribution of non-governmental organisations (NGOs) in supporting disability-inclusive development cannot be overstated. Managing a non-governmental organisation dealing with the concerns of persons with disabilities differ with legal bindings and also the activity.

Meaning and Definition of Non-Governmental Organisation

The idea of NGO came into use in 1945 following the founding of the United Nations Groups which recognised the necessity to give a consultative role to organisations which were neither designated as neither government nor member states (Willett, 2002). (Willett, 2002).

NGOs come in a variety of shapes and sizes, and their functions vary from country to country. Although there is contestation of the definition of an NGO, it is largely agreed that they are organisations which pursue activities to relieve the suffering, promote interests of the poor, preserve the environment, offer basic social services, and undertake community development (Cleary, 1997). (Cleary, 1997).

Differentiating characteristics that set these firms apart from the competition are essential (Stephenson, 2003). For organisations to be recognised as not-for-profit, they should satisfy the following criteria:

An NGO must first be privately founded and sufficiently autonomous in its operations, free from direct governmental supervision.
Second, to properly establish its volunteer nature, an NGO should also be non-profit.
Thirdly, it cannot be seen as a political organisation with the objective of gaining power.
Fourth, an NGO should promote initiatives that highlight its commitment to serving the public interest (Schiavo Campo et al, 2001).

According to Turner and Hulme, “NGOs are generally registered organizations, community groups, professional associations, trade unions, cooperate charity organizations whose aim is to improve the well being of their members and of those areas in which they exists” (Turner and Hulme, 1997).

NGOs, on the other hand, are private groups, according to the World Bank, that engage in activities to alleviate suffering, advance the interests of the poor, preserve the environment, offer essential social services, or engage in community development (Lekorwe and Mpabanga., 2007). Any voluntary, non-profit group of citizens formed at the local, state, or worldwide level is considered an NGO. NGOs conduct a range of service and humanitarian duties, bring government concerns to light, lobby for policies, monitor them, and promote political participation by disseminating information. They are task-oriented and motivated by people who have a common interest. Some are structured around particular concerns, such the environment, human rights, health, or disabilities. They offer analysis and knowledge, act as early warning systems, and support the monitoring and execution of international agreements.

Laws Related to NGO

Under the appropriate legislation established by the government, non-profit or public charitable organisations in India may be registered as trusts, societies, or private limited non-profit corporations. In India, non-profit organisations must meet the following criteria in order to be considered legitimate: (a) they must be independent of the government; (b) they must be self-governed by a board of trustees, "managing committee," or governing council made up of people who typically act in a fiduciary capacity; (c) they must provide benefits to people who are typically not members of the organisation; and (d) they must be "nonprofit-making" in the sense that they are not allowed to

The definition of "charitable purpose" according to Section 2(15) of the Income Tax Act, which is uniformly applicable across the Republic of India, includes "relief of the poor, education, medical treatment, and the promotion of any other cause of wide public value." A goal that is solely related to religious instruction or worship is not regarded as benevolent. In order to determine if a purpose is public or private, one must determine whether the class that will profit from it or from whom the beneficiaries will be chosen constitutes a sizable portion of the public. A public charity goal must assist a sizable portion of the general population as opposed to a specific group of people. Even though they are widespread, organisations that lack the public component, such as trusts for the benefit of labourers or workers of a firm, have not been considered charitable. The fact that the beneficiaries may belong to a particular religious faith or a sect of people of a certain religious persuasion would not affect the organization's "public" character as long as the beneficiaries comprise an uncertain and fluctuating body of the public answering a particular description.

The Revenue Tax Act accords all types equal treatment with regard to exempting their income and awarding 80G certificates, which allow donors to non-profit organisations to claim a rebate against gifts made, whether they are a trust, society, or section-8 corporation (prior section 25). The FC(R)A regulations and the Home Ministry apply to foreign donations to nonprofit organisations.

A Non-Profit Organization's Formation and Registration in India:

Registration as a ‘Trust’ under Indian Trust Act, 1882
Registration as a ‘Society’ under Societies Registration Act, 1860
Registration as a ‘private limited non-profit company’ under Section - 8 of Indian Company Act, 2013 (previous section 25)
Additional Licensing or Registration for NGO’s working in the field of Disabilities:
> Licensing from Government Bodies and Agencies to be acquired as per the guidelines and directions provided in The Persons with Disabilities Act, 1995.
> Licensing from Government Bodies and Agencies to be acquired as per the guidelines and directions provided in The National Trust Act, 1999.

Trusts

Typically, where there is property involved, particularly in terms of land and buildings, a public charity trust is floated.

Legislation: In India, various Trusts Acts that are now in effect regulate the trusts in each state. The general principles of the Indian Trusts Act, 1882 are used when there is no Trusts Act in a certain state or region.
Main Instrument:The trust deed, which should specify the trust's goals, objects, and management style, is its primary instrument in any public charity trust. The minimum and maximum number of trustees must be stated in every trust instrument. The trust's goals and objectives, management procedures, the appointment and removal of additional trustees, and other details should all be clearly stated in the trust deed. The settlor(s) and trustee(s) must both sign the trust deed in the presence of two witnesses. The value of the non-judicial stamp paper used to execute the trust deed will be determined by the value of the trust property.
Trustees: There should be at least two trustees for a trust. The number of trustees has no upper bound. The trustees make up the Board of Management.
Application for Registration: The official who has authority over the area in which the trust is sought after should be contacted regarding the application for registration. The applicant must attach a court fee to the form and pay a registration fee, which may vary depending on the location and value of the trust office and trust property, after providing information in the form regarding the designation by which the public trust shall be known, names of trustees, mode of succession, etc. Before the registrar, sub-registrar, deputy registrar, regional officer, superintendent of the regional office of the charity commissioner or authorised registrar, the applicant must sign the application form. A copy of the trust deed must be included with the application form. Affidavit and a letter of consent are two additional documents that need to be included when submitting a registration application.

Society

The following societies can be registered under the Societies Registration Act, 1860, according to section 20: "Charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general u

Legislation: Under the Societies Registration Act of 1860, a federal law, organisations must register. The society must be registered by the Bombay Public Trusts Act in addition to the Societies Registration Act in some states with charity commissioners.
Main Instrument: Any society's memorandum of association and rules and regulations serve as its primary instruments. There is no need for stamp paper. The society's objectives, goals, and management style need to be made very clear.
Members: A society needs a controlling committee with a minimum of seven members. The number of managing committee members is unrestricted. The Board of Management can take the shape of a management or executive committee, governing body, or council.
Application for Registration: Applications for registration may be submitted to the Registrar of Societies at the state level, the District Magistrate at the district level, or the local Registrar of Societies office. State-to-state variations in the process exist. The following documents should be included with the application, however, in general: (a) the memorandum of association and rules and regulations; (b) consent letters from all managing committee members; (c) authority letters duly signed by all managing committee members; (d) an affidavit signed by the president or secretary of the society on non-judicial stamp paper, along with a court fee stamp; and (e) a declaration by the managing committee members that the fu Each of the aforementioned documents, along with the necessary registration money, must be presented in duplicate with the registration application. The memorandum of association and rules and regulations do not need to be signed on stamp paper, in contrast to the trust deed.

Non Profit Company under Section 8 of Indian Companies Act 2013

A section 8 company may be established "for promoting commerce, art, science, religion, charity, or any other useful object," as stated in Section 8 of the Indian Companies Act, 2013 (Old section 25(1)(a) and (b) of the Indian Companies Act, 1956), provided the profits, if any, or other income is applied for promoting only the company's objects and no dividend is paid to its members.

Legislation: Section 8 of the Indian Corporations Act 2013 governs the registration of section-8 companies (old section-25 of the Indian Companies Act, 1956).
Main Instrument: Memorandum and articles of association serve as the main document for a section-8 business. For making submissions, no stamp paper is needed.
Board Members: A section-8 company needs a minimum of three members on its board of directors. The number of members has no upper bound. The managing committee or board of directors serves as the board of management.

Application for Registration:

1. An application has to be made for availability of name to the registrar of companies, which must be made in the prescribed form no. 1A, together with a fee. It is advisable to suggest a choice of three other names by which the company will be called, in case the first name which is proposed is not found acceptable by the registrar.

2. Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board. The application should be accompanied by the following documents:

Three printed or typewritten copies of the prospective company's memorandum and articles of organisation, officially signed by all of the promoters and including their full names, addresses, and places of employment.
A certification from an attorney or chartered accountant stating that the memorandum and articles of association were drafted in accordance with the Act's provisions and that all registration-related obligations as well as any related or supplemental issues were properly met.
Three copies of a list with the promoters' names, addresses, and occupations, as well as the names of the organisations, associations, and other institutions where the promoters, partners, and members of the proposed board of directors are directors or hold responsible positions, if any, along with a description of the positions held.
A detailed summary of the association's assets, including their estimated values, and liabilities, either as of the application date or within seven days of that date, must be submitted.
a projection of the proposed company's expected future yearly revenue and expenses, including information on the sources of revenue and the intended uses of expenditures.
A brief summary of the work the association has already done, if any, as well as the work it plans to conduct following registration in accordance with section 8;
A sentence outlining briefly the justifications for the application. A statement from each application stating that they are of sound mind, are not insolvents who have not been discharged, have not been found guilty of any crimes, and are not barred from serving as directors under section 203 of the Companies Act of 1956.

3. The applicants must also furnish to the registrar of companies of the state in which the registered

office of the proposed company is to be, or is situated, a copy of the application and each of the

other documents that had been filed before the regional director of the company law board.

4. The applicants should also, within a week from the date of making the application to the regional director of the company law board, publish a notice in the prescribed manner at least once in a newspaper in a principal language of the district in which the registered office of the proposed company is to be situated or is situated and circulating in that district, and at least once in an English newspaper circulating in that district.

5. The regional director may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the license should or should not be granted.

6. The regional director may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the license as may be specified by him in this behalf

Additional Licensing to NGO’s working in the Field of Disabilities

A Non-Governmental Organisation desirous of working in the field of disabilities needs to obtain additional license from the concerned authorities as directed under respective acts. These licenses are as follows.

A Non-Governmental Organization must register under section 12(AA) of the Income Tax Act, 1961, in order to become a tax-exempt organisation. Within a year of the Trust, Society, or Company's registration date, this registration must be completed. It is necessary to get in touch with the income tax commissioner who oversees the region where the organisation conducts business. For the application, the form number 10A must be utilised. In the life of an NGO, this step only occurs once.
Organizations that want to realise their goals by soliciting donations from the general public may register under section 80(G) of the Income Tax Act of 1961. After receiving 12(AA) registration, this registration can be completed whenever. An NGO can give a certificate to a donor for making a donation by registering under section 80(G), and the donor would receive a 50% exemption from his taxable income.
The NGO needs to be registered under the Shop and Establishment Act in order to open a location and hire staff.
An Indian non-profit organisation must be registered as a trust, society, or corporation, have FCRA registration, and get a No Objection Certificate in order to hire foreign workers. Additionally, the targeted worker needs a work visa.
The Reserve Bank of India must provide authorization, the Ministry of External Affairs must issue a No Objection Certificate, and a trust, society, or business must be registered before a foreign non-profit can open an office in India and hire foreign employees.
After adhering to the requirements set forth in the Persons with Disabilities Act of 1995, an organisation dedicated to promoting the welfare of people with disabilities must apply for a special licence from government authorities.
After adhering to the requirements set forth in the National Trust Act of 1999, an organisation dedicated to promoting the welfare of people with disabilities must apply for a special licence from government officials.