The importance of social organisations
What is an NGO?
An organisation which works independently from the government of a nation and it does not work for profit. Societies working on humanitarian causes of the environment and work on community, national and international levels.
Purposes of NGO’S
- Ngo’s help in international aid, development and do philanthropic work at an international level such as Red Cross Society.
- They are actually funded on budgets of millions of dollars by corporate honchos.
- The World Bank characterises two kinds of Ngo’s :
- Opertional NGO’s focuses on implementing development projects and on designing them.
- Advocacy Ngo’s are cause NGO’s and work for implementing measures to seek changes in transformation of public policy.
Applicable Registration Act and Law to Register NGO
- The registration process in India is mainly under Trust Society and Non Profit Private Limited Company is available under various kinds of Acts and states in various kinds of laws.
- A charitable trust must be registered under the organisation of Trust Society. Two persons are required to complete the performa grata.
- In Maharastra, one must register the trust with Maharastra Trust and society.
Process of Registration
- For starting an NGO, you must know the basic information entailing its registration. Apart from money, you must have a cause and burning desire to support anyone who is in need of help. You must go through the process of filling the paper work and prepare and associate with a team of people willing to support your cause, save up funds and reports and management of activities of financial nature, pay fees and other expenses.
- Prepare and outline proposals drawing up a budget, organise various projects which are required to implement the setting up of an NGO
FORMATS TO REGISTER NGO’S
- TRUSTS
- SOCIETIES
- SECTION 8
Trust
- For registering a trust, one must have a property. Trust acts are different for various states. If there is no trust, then, Indian Trust Act will come into force.
- Following papers need to be submitted:
- Address proof
- Aadhar card, Driving license or passport
- Voter ID
- After you have all documents, submit form to register for the process of trust formation. 8-10 days are required to complete the process.
Society
The Society Registration Act classifies the following societies:
- Societies into charitable acts
- Societies for promoting liberal arts and science
- Society for diffusion of political education
- Military Orphan fund
- Society for maintaining libraries
You need seven members plus the following:
- Name of society
- Address proof
- Identity proof
- Copies of MOA and By laws
Section 8 Company
Any non – profit organisation can come into place as a section 8 company. The promotion of commerce, charity, education, religion, social welfare and research are its objectives. To form a section 8 company, one needs to have two directors ( public and three in case of a private sector.
Documents required
- Name of company which is required to be approved
- Address proof of the office
- Identity proof of the directors managing it
- Driving licence, Aadhar card or passport
- Memorandum of articles and association of company
Lastly digital signature and identification number of one of the directors.
TRUST ORGANISATION: COMPARISON BETWEEEN SOCIETY AND TRUST
- Trust is a bridge between two parties. One party holds the reins of property for the benefit of the second party so that agreement can sustain.
- Society is a club of different people in tandem for indicating a particular event of literary, scientific or charitable purpose such as Red Cross society. Societies are registered under Registration Act 1860. It takes one or two months to form a particular society.
- Bombay Trust Act is an example of a trust act. It takes two days to one week to form a trust.
- The Deputy Registrar of Society registers all societies within a specific state.
- A society or Ngo cannot be registered with the name already used for another society or NGO; In that case a society or Ngo will not be registered.
- If any name is restricted by the Emblem Act, it will not be registered.
- Names disapproved by the Emblem Act come under the restricted category( Trust )
- Societies cannot be formed by members of the same family.
- Formation of the same family can form a trust. There is no restriction. But Ministries can refuse funds to a family with one of the members as a trustee.
- Seven members are required to be in society.
- Two trustees should be a part of a trust.
- Equal rights are given to members of a society in a body.
- Funding can be given if eligibility is certified by Government ministries or departments.
- Bye laws specify the meetings in a society.
- No such provisions exist for meetings held for members of a trust.
- Membership of a society cannot be transferred in a trust.
- Trusteeship cannot be transferred in the Indian Trust Act.
- Foundation, Samiti and Society cannot be used for a name( society)
- One can use Trust, Samiti and society for a trust. Trust word cannot be used.
- One cannot get FRCA registration, if there is a foreign member.
- Trust can be formed in all schools and colleges in every state except Rajasthan.
- Permit and approval can be received to get payment for a society.
- Trustees can receive funds only in case of professional service or if a provision has been made to receive funds.
Which is the Best Kind to register your NGO?
There are various advantages for each form, here they are:
- Trusts get benefits from the government in the form of land.
- Taxes are saved
- 80 G Income tax benefit
- Separate legal identity for societies
- Liability is limited in society due to share of each member
- Income tax benefit
- Legal protection is guaranteed
- In case of section 8, no minimum capital is required which is not the case for society/trust.
- Exempted from stamp duty
- One more additional benefit is easy transfer of ownership making it the best choice for registration.
