Nonprofit or NGO in India can be established to work
for society. Under the Indian set up most of the grassroots NGOs are doing
excellent work in the various fields and helping the govt in accessing people
in a better way. The main work most of the NGOs in India are doing can be
mentioned as education, health care and awareness, social welfare, drug de
addiction centre, agriculture, legal literacy and awareness, women empowerment,
tribal welfare, etc.
NGO stands for Non-Governmental Organization which
can be formed by a group of private persons. NGO is registered under the
Society Registration Act of 1860 and recognized by the govt for performing some
of the functions or allocated work on behalf of the government and/or charity
work through private donor collective. This is a very unique and informal type
of arrangement wherein the government can extend the help, support and
authority to a private entity to perform some work of government on its behalf.
The activities being assigned to NGOs are mainly
welfare activities which may be of various types. In some cases the activities
assigned to the NGO are also administrative also. NGO term is widely used for
the registered trusts as well as societies in India which perform such work.
Government is more concerned about the compliance of the various norms related
to the grants to be given to the society and the utilization of the funds by
the NGO so we can say that NGO is a private body being run in accordance with
the existing laws. It is not a govt organization but it can take up the
activities being done by the government at various levels. At times it can also
take up the work being done by the govt under the authority of the government.
An NGO can be established either through a registered
Society or through a Trust. Both these options are talked about here,
The Society Registration Act, 1860
Establishment of a NGO in India is through the
registration of a Society under the Society Registration Act of 1860 for which
at least seven persons are required as the desirous persons to establish the
said society. The identification and residential proof of the said persons is
essential. An application for registration of the society is submitted before
the registrar of Society who confirms all the documents and then on the basis
of which the Registrar of Society grants the registration of society.
A Registered Trust as NGO
Any legal entity can establish a Trust in India
through a registered Trust Deed which becomes a legal entity, all activities
of a NGO can be done through the aims and objectives of the said trust also.
Management of NGO is mainly in the hands of the
persons who have formed it as per the bye laws and regulations prescribed by the
government. Since most of the NGOs are run on government donated funds, some
measures to ensure the appropriate expenditure of the funds given by the
government are taken at the management level. The government also seeks the
audit of the funds and the way in which the funds have been spent.
This all is
done in a transparent manner which provides a lot of operational freedom to the
NGO to operate and achieve its goals. In most of such cases there is a
provision in the bye laws that all the income, earning, movable and immovable
properties of the NGO shall be solely utilized and applied towards of the
promotion of its aims and objects as set for in the memorandum of association.
No profit on there of shall be paid or transferred directly by way of
dividends, bonus, profits or in any manner whatsoever to the present or future
members of the society or any person, through any one or more of the present of
the future members. No member of the society shall have any personal claim on
any movable or immovable properties of the society or make any profit
whatsoever by virtue of this membership. There is a large amount of freedom to
run and operate the NGO, the government seeks the compliance of the spending of
money by the NGO as per the terms of the grants.
Benefits of establishing NGO in India
Any social spirited person can establish a NGO in
India as per his choice and work. NGO has very important role of doing several
creative things in the society. Most of the NGOs in India are doing services in
various fields and doing wonderful activities. Such NGOs are supported by the
govt by way of grants and financial assistance.
