How to Start an NGO?

NGO is a non- profit, non-government organization which works towards social upliftment of society, Nowadays, having your own NGO is something which is increasingly sought after the post CSR mandating. The Step by Step series on how to start an NGO is discussed below

STEP 1 -Decide the mission of your NGO

There are a variety of ways through which you can serve the society i.e. education, health, and medication facility, providing food supplies, helping with shelter and skills development, etc. and further many ways in which you can achieve them for e.g. – food supplies can be provided in the form of Restaurant with subsidized prices. So a clear mission and objective should be decided before you start an NGO, it could also be a combination of objectives.

For example, if your objective is to provide an education facility you can have your mission statement as improving the standard of living of people by providing education.

STEP 2 – Decide the name of NGO

Name of NGO should be reflective of the mission and vision of the organization, it should go along with the objects and not against it, it should also abide by the naming guidelines of relevant statutes like Society Registration Act, Companies Act, etc.

STEP 3 – Set up Members of NGO

You need members, leaders, and managers to start an NGO and carry on its activities. A group of people with a strong spirit of charity and social welfare attitude should be part of your NGO body.

STEP 4 – Prepare Memorandum/Articles and bylaws of your NGO

Clearly stating its name, address, mission, and objective, its members, their roles and responsibilities, a memorandum of NGO should be prepared. It should be drafted in a way that confirms the registration process and the relevant statute in which it is registered.

STEP 5 – Registration

NGO can be registered under various Indian Laws, thus NGO is a concept rather than an entity, any entity whether trust, society, or company can be called as NGO.

Various laws in which NGOs can be registered are –

  • Societies Registration Act – In society, a minimum of 7 members are required to be the members.

STEP 6 – Obtain funds

For carrying out the welfare activities funds are necessarily requires; during early stages donations can be obtained from promoters, local friends, family members, relatives, and as the activities grow, campaigns can be set up for donations and funds.

STEP 7 – Spreading Awareness

Spreading awareness among the people about your organization, its welfare activities can inculcate a social attitude among them to join for membership, volunteering, and participating in activities.

STEP 8 – Registration u/s 12 A of Income-tax Act as trust

NGOs can apply for registration as trust u/s 12A of income tax Act and avail Income tax benefits u/s 11 and 12 i.e. exemption of donations and receipts subject to certain conditions.

STEP 9 – Registration under section 80G of the Income Tax Act

Though not mandatory but it is recommended to get registered for giving the benefit of 50% or 100% exemption on the donations to the donors, it is required to get the registration under section 80G of Income Tax Act.

STEP 10 – Start taking up CSR activities

With the advent of CSR activities being part of the legal requirements, NGOs play a very major role in implementing its activities. Being open to taking up the company’s CSR programs and helping them implementing it will foster mutual support relationships between them and also provide greater assistance to the underprivileged making society a much better place to be in.

If you require any assistance in Registering or Managing Your NGO please reach our experts at +91-7008804070