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Last Updated: December 12, 2022Approved
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So many people want to quit their high profile jobs and turn to social work! If you are one of them, you should know that setting up a not-for-profit non-governmental organization (NGO) is simple and not so difficult task. One can even do it on his or her own or take professional help from a Lawyer, chartered accountant or anyone familiar with the steps involved.
NGOs are organizations that usually work towards the promotion of certain causes or the welfare of a target population. Since they function in the non-profit realm, their objectives and modus operandi are often a bit different compared to for-profit organizations. In order to achieve their objectives, NGOs need to follow a realsitic approach right from the stage of conceptualization. Besides, there are rules and regulations laid down by the Government of India and the provincial state governments. Here is a brief step-by-step guide for starting your own NGO in India.
To start a NGO, you need a great willingness to serve on some point of view.
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1
Lay down the issues that your NGO wants to address, and identify the mission and vision.[1]
2
Before registering the NGO, you need to have a promoters' body in place, that will be the first governing body on registration, and thereby responsible for all activities and decisions of the NGO, till the new body is constituted as per the laid down rules, as and if applicable. The governing body will be involved in all matters of strategic relevance, including strategic planning, financial management, human resources and networking.[2]
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3
Every NGO in India is legally required to document a trust deed/ Memorandum of Association /Rules & Regulations that contain the name and address of the NGO, mission and objectives, details of governanace of the NGO.[3]
4
In India, you may register an NGO under any of the following Acts:[4]
- As a Public Charitable Trust., a NGO can be registered in certain provinces in India. There is no national level Public Charitable Trust Act. It may be note that Indian Trusts Act 1882 is mean for Private Trusts, which is legally treated like a for-profit entity.
- Societies Registration Act of 1860: A society can be formed by a group of seven or more people. Its formation is simple (but may take a little longer time to complete the registration process than that of a trust) and less expensive than that of a trust, but it also affords more flexibility in terms of regulations.
- Companies Act of 2013: An association that is formed for the promotion of art, science, commerce, religion or charity can be registered as a not-for-profit company but its members cannot be paid a dividend. All income and profits, if any, should be utilized for furthering the objectives of the company.
5
Raise funds through internal sources (membership fees, sales, 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) 2010.
- All the above three types of organization are eligible to register under section 12A of the Income Tax Act of 1961 and on registration enjoy exemption of tax liability for its income.
- All the above three types of organization are eligible to register under section 12A of the Income Tax Act of 1961 and on registration enjoy exemption of tax liability for its income.
6
Besides meeting the above mandatory requirements, you need to build a wide professional network with other NGOs, government agencies, media and the corporate sector. Like most other organizations, an NGO thrives primarily on the strength of partnerships.
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How much money to do I need to start an NGO?
Community Answer
You need only Rs 500 for registration fee. But you will also need to have around Rs 5000 to 6000 for documentation fee, consultation, etc.
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What is the minimum number of people required to start an NGO?
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To start a NGO in Trust registration, you need at least 2 people. To start an NGO in Society registration, you need at least 7 people. To start an NGO at a nation level, you need at least 8 people.
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Can I start a charitable trust under the Indian Trust Act without registering it initially?
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You can start a charitable trust without registering it. But then you wont be able to prove its identity. Your trust needs to be registered to gain proceeds and be functional.
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About This Article
wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 35 people, some anonymous, worked to edit and improve it over time. This article has been viewed 868,237 times.
6,559 votes - 91%
Co-authors: 35
Updated: December 12, 2022
Views:868,237
Categories: Nonprofit Organizations
Article SummaryX
To start your own NGO in India, start by deciding what issues you want your NGO to address and what its mission and vision will be. Once you’ve done that, you will need to put a promoters’ body in place. They will be responsible for all the activities and decisions of the NGO. Then, document a trust deed/Memorandum of Association/Rules & Regulations before registering your NGO. Once your NGO is registered, raise funds for your organization. You can do this through membership fees, sales, subscription charges, donations, private organizations, foreign sources, or grants-in-aid from the Indian government. Lastly, remember that NGOs thrive mainly on the strength of partnerships. Therefore, make sure to build a wide professional network with other NGOs, government agencies, media, and the corporate sector. For more information like details on the acts you have to register NGOs under, see below!
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Dhruv Kumar
Sep 5, 2017
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