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How to start an NGO in India – Registration, requirements and challenges – 2021

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How can I start my own NGO in India?

Starting an NGO in India is not such a difficult task. It would be best if you were intensely passionate about what you want to do. This is one of the most important factors before your venture on starting an NGO. Then comes the plan of action.  

  • Recruit your trustees, board members, and shareholders.
  • Register and get certified.
  • Have a strategic plan, and make a list of NGOs in India for better understanding.

 

If you have a strong desire to help people in need, NGO might be the best idea for you. Here’s why:  

  1. People who work hard for something they are passionate about are sure to reach great heights.  
  2. Your primary focus will not be profitable. It will be helping people and bringing out the change. 
  3. The fastest way to see a change in how specific thing works is by being the one who takes a step towards changing it. 
  4. You will be helping people who are desperately in need of your help. And you will be working towards shaping their future. 
  5.  You will be working towards the betterment of our society on humanitarian grounds. 
  6. Able to inspire others to put your plan into action. All you need is the passion that drives you towards taking the first step. 

Here, I have prepared an easy Infographic for better understanding. 

an Infographic of How to start an NGO?

Registration of NGO

While registering your NGO, you have three options to choose from. This is because an NGO can be legalized in 3 different forms: 

  1. Trusts: The Indian Trust Act of, 1882 and the control system is centralized. It is a legal form of an NGO. It is the arrangement/agreement between two parties or more. To register under Trust’s act, you need to have two trustees. 
  2. Societies: It is a legal form of an NGO. Societies are governed by the Societies Registration Act, 1860. They must be registered with the respective state Registrar of Societies to be eligible for tax exemption. A fundamental document is required to register under this NGO. It is called the Memorandum of Association and Rules and Regulation. The control system in this is democratic in nature. 
  3. Section 8 Company or Non-Profit Companies: It is a legal form of NGO. You need to have three minimum members under this act. It is registered under the Companies Act.  

Requirements of an NGO (in India)

The essential documents you need is given below. The points you will need to remember in the registration procedure are: 

  • Identity proof in the form of Aadhar card/ Voter ID.  
  • Income tax PAN and Passport are mandatory.  
  • Residential proof in the form of electricity bill/ water bill/mobile or telephone bill.  
  • As a proof of ownership- Sale deed/ house tax. 
  • In case of rental space for the office, office registration proof or certificate is needed. 
  • NOC. 
  • Two trustees. 
  • Two Directors/ Two Shareholders. 
  • One of the Directors is mandatory to be an Indian Resident. 
  • To start an NGO, no minimum saving or capital is required. 

 

How to reduce expenses incurred by NGOs in order to do maximum charity?

There are different types of costs that have to be mentioned in the budget. Most donor agencies prefer to have the costs spread over different heads so as to get an overview of how the resources have been divided between different types. Basically, we can divide the overall costs as:

Operational Costs:

Operational costs include those expenses that have to be met for implementing activities for a project or an organization. These are directly billed to the donor agency because they have a direct impact on the beneficiary community.

Staff costs:

It refer to the expenses towards paying salaries and consultancy fees to the staff of the organization. Staff costs include expenses right from the recruitment of the staff (interview, orientation, etc) to their salaries. Professionally speaking, it is important to mention how much time a particular staff will provide for the project and his/her salary has to be calculated accordingly.

Core Costs:

Core costs are also costs incurred towards the operational expenses but of the organization. Most donor agencies would like to know how much money the NGO will spend on the administration of the organization. Costs here can include staff meetings, stationery, and other office maintenance expenses. In some cases, the expenses towards hiring a receptionist or caretaker who is not directly contributing to the project can be listed

Capital Costs:

Although donor agencies are advising NGOs to massively cut down on capital costs, yet these costs continue to remain essential. These include expenses for buying computers, office furniture, vehicles, office building, etc. Some donors have even stopped funding capital costs completely. Even if you are proposing these costs in a budget, ensure that they cover less than 10% of the total budget.

How to run a virtual trivia night fundraiser for a non profit?

For charity digital leaders, we showcase some of the most innovative digital fundraising events and campaign ideas.

Games Tournament

Great for charities already involved with video, live streaming gaming tournaments can be powerful fundraisers. Recently, Comic Relief launched a Dungeons & Dragons event with comedians Sue Perkins, Nish Kumar, Ed Gamble, and Sara Pascoe taking part. The tournament was hosted on Tiltify and has targeted raising £10,000.

Online auctions

Tapping into those retail enthusiasts missing out on shopping, online auctions can raise significant funds for charities. Premier auction house Sotheby’s May Day COVID-19 event sold lots worth up to $1 million each, with all funds going to coronavirus relief efforts. Some of the lots included virtual cooking lessons with Heston Blumenthal; virtual conversations and a musical concert with Sheku Kanneh-Mason; and a virtual meeting with renowned businessman Sir Martin Sorrell.

Peer-to-peer

Empowering fundraisers with their own donation pages, peer-to-peer fundraising efforts work well with large-scale events. Advancing the fundraising efforts of the London Marathon, The 2.6 Challenge makes use of peer-to-peer funding by letting supporters set up their own Virgin Giving pages. Individuals or teams then raise money for the challenge under the overall banner. Charities provide support by providing fundraising ideas and downloadable packs for digital fundraisers.

How can I get CSR or Government funding for my NGO?

To get Empanelment with “National CSR Hub” at the Tata Institute of Social Sciences (TISS)

Through the Companies that can Provide funding under Corporate Social Responsibility (CSR)

What is it like to work in an NGO?

Landing a job at an NGO can be a very competitive process. First of all, you need to keep in mind that even a non-governmental organization works more or less like every other organization. They have departments that each require different skills and tasks, therefore they need diverse profiles in order to fill a wide range of positions. The first step is to define what kind of work you want to do and what type of NGO you want to work for.

How do I get people to donate in my NGO?

Here are a few gestures to bring donations from people:

Involve your friends when you work to support an NGO

Even if they cannot give money, you can give them the pleasure of giving back to society with volunteerism. A spark may soon ignite when they realize that along with helping the poor directly, every single rupee they donate is generating immense value. And, once they donate to charity, and find it a meaningful activity, they may be, on their own, driven to donate more.

Explain the importance of giving back

You don’t have to give a lecture on giving back or be preachy, but be sincere and honest. It may take a discussion to even get them to visit the site where aid or outreach is being offered.

However, a calm discussion and showing them a video of small gestures like donating money can definitely win them over. If they support a cause of their own, support them in actually working for it, and then request they return the favor,

Make it fun

Giving back isn’t as serious and boring as signing a cheque. Invite your friends to large-scale charity events or to the slums in their own cities where children are happier with access to education. This shows the real value that a single rupee brings to a child’s life while making charity a social occasion instead of just a responsibility. Charity events are great places to meet like-minded people from all walks of life, which may attract someone looking to expand their social circle.

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