NGO, Trust & Society
SMCA non profit organizations can be registered in India as a Society, under the Registrar of Societies or as a Trust, by making a Trust deed. A third option is registration as a section-8 Company under the Companies Act, 2013..
- Lay down the issues that your NGO wants to address, and identify the mission and vision..
- Before registering the organization, you need to have a governing body in place, which will be responsible for all activities of the organization. The governing body will be involved in all matters of strategic relevance, including financial management.
- Every NGO in India is legally required to document a trust deed/ Memorandum of Understanding/Bylaws that contain the name and address of the NGO, mission and objectives, details of governing body members, rules and regulations.
- In India, you may register an NGO under any of the following Acts:
- * Indian Trusts Act: A Charitable Trust is not legally obliged to obtain registration; unless the Trust wants to claim income tax exemptions or is based in a state that is governed by the Public Trusts Act, such as Maharashtra.
- * Societies Registration Act: A society can be formed by a group of seven or more people. Its formation is more complicated than that of a trust, but it also affords more flexibility in terms of regulations.
- * Companies Act: An association that is formed for the promotion of art, science, commerce, religion or charity can be registered as a company but its members cannot be paid a dividend. All profits should be utilized for furthering the objectives of the company.
- Raise funds through internal sources (membership fees, subscription charges, donations, etc.) or grants-in-aid from the Government, private organizations or foreign sources. Inflow of foreign funds is governed by the Foreign Contribution Regulation Act (FCRA) 1976. Many NGOs are eligible for tax exemptions - be sure to check your eligibility status and file your application if the exemption applies to you.