If you’re looking forward to starting an NGO, for community work, but wondering how to start it or what is the process of starting it, you are at the right place. You’ll find all the answers in this blog. We answer all the questions regarding NGOs. NGO exists as a non-governmental organisation, while there is no utterly agreed-upon meaning of an NGO, typically, it is a voluntary group or institution with a social purpose which functions independently from the government.
As per the surveys, NGOs have high public trust and are crucial for helping society in many ways. India has over 3.1 million NGOs, which means there is one NGO for every 400 people, surpassing the number of schools and healthcare centres in the country. NGOs employ over 19.4 million people, making the sector a significant part of the country’s workforce.
Through this blog, we will be providing complete information about NGOs, like what is NGO? How to Start an NGO in India? Documents Required?
What Are NGOs?
An NGO is an organisation in which the government plays no role. It is a Non-governmental organisation, and people who are financially well or in business help other people through NGOs. NGOs are a subgroup of organisations established by citizens, including clubs and associations that provide services to their members and other organisations that aim at the welfare of society. NGOs do social work, such as housing widowed women, teaching poor orphans, protecting women, etc.
NGOs were formed in the US because in the US, aside from the govt., various social works are done by these organisations. NGOs can be operated by anyone, however it is really difficult for one person to operate the whole NGO, s it is usually operated by a group of people.
It is not operated for the purpose profit but for the good of others. People who are passionate about bringing a change within the society can do so through a registered or unregistered NGO. But a few benefits of registered NGOs include simply being able to get financial support from the government for social welfare. If a person wants to do social work or social welfare without the government’s help, they can do so by contacting NGOs.
Types of NGO And its Benefits
Operational NGOs
Operational NGOs focus on delivering direct services and executing projects that address community needs. Their work spans zones like healthcare, education, disaster relief, and poverty alleviation. These organisations regularly operate on the ground, working closely with local communities to supply essential resources and support.
Operational NGOs focus on achieving significant outcomes, like constructing schools, providing medical assistance, and delivering food. Their work is funded by the funds or grants or in partnership with other organisations. It is operational NGOs that have the critical role in helping to improve the standards of living of groups that are often considered to be vulnerable by offering what can be said to be lifeline services to them.
Benefits
- Offer such basic needs as the health services, teaching, or food to needy people, improving their quality of life.
- Provide the need of the hour, both during natural calamities, conflicts, and humanitarian crises; reduce the pain and prevent deaths.
- Promote development in the long term based on project implementation that helps communities become more efficient on their own.
- Collaborate with local entities to ensure that the services they offer to the society are socially appropriate and undertake effective solutions to address societal issues.
Advocacy NGOs
Advocacy NGOs are those NGOs whose goal is to bring changes to policies, increase awareness and fight for changes. While operational NGOs are service providing, they do not directly provide services but aim to shape laws, policies, and perceptions on issues such as human rights, environmental concerns, and social justice.
These organisations utilise tools like lobbying, research, open campaigns, and media engagement to push for systemic changes. Advocacy NGOs often partner with governmental organisations, global organisations, and other NGOs so as to enhance their impact. It is crucial to appreciate their contributions in achieving sustainable social change and ensuring that marginalised groups are included and represented.
Benefits
- Impact government policies and laws, driving social and natural change on a bigger scale.
- Raise awareness on critical issues, educating the public and advancing civic engagement.
- Provide a voice to marginalised groups, guaranteeing their concerns are addressed in policy-making.
- Build networks and coalitions to open up their backing efforts and reach broader audiences.
Hybrid NGOs
Hybrid NGOs combine the approaches of both Operational and Promotion NGOs, providing direct services while also working to influence policy and societal change. This double approach allows them to address both prompt needs and long-term systemic issues.
For example, a Hybrid NGO might give healthcare services in underserved areas whilst simultaneously advocating for healthcare policy reforms. By integrating operational exercises with advocacy efforts, Hybrid NGOs can make sustainable arrangements that not only meet critical needs but also tackle the root causes of social issues. This comprehensive strategy maximises their effect on the communities they serve.
Benefits
- Address immediate needs while advocating for systemic change, ensuring both short-term and long-term solutions.
- Combine direct service with policy influence, creating a holistic approach to problem-solving.
- Overcome developing challenges by synchronising operational and advocacy approaches to achieve the optimisation of their use.
- Incorporate a range of stakeholders at the grass-root level as well as policy makers for a more dynamic joined-up thinking.
Why Should You Start an NGO?
- Make a Positive Impact: Address pressing social issues like poverty, education, or healthcare by straightforwardly helping communities in need.
- Empower Vulnerable Communities: Give resources and opportunities to marginalised groups, giving them a voice and progressing their quality of life.
- Promote Social Justice: Advocate for policy changes that address inequality and make a more pleasant society.
- Mobilise Resources: Raise funds and gather support from donors, volunteers, and partners to maximise your organisation’s reach and adequacy.
- Drive Systemic Change: Impact open opinion and administrative policies for long-lasting societal improvements.
- Build Partnerships: Work together with similar organisations, governments, and businesses to achieve shared goals.
- Fulfil a Personal Mission: Match your career with your passion for creating an impact, leading to a fulfilling and purposeful life.
How to get Certified as an NGO?
Founding an NGO to help develop communities requires certain key registrations with the Indian Government. These include the following:
1. Getting a DSC and DIN
DSC stands for Digital Signature Certificate, which is basic for confirming the authenticity of online documents. With most work having shifted online, DSC is an important certificate to obtain. There are three classes of DSC: classes 1, 2, and 3. A director of an organisation must receive a Class 2 or higher certificate.
These signatures are renewable and usually valid for one to two years. To get certain classes of DSC, you must begin with generating a Din or Director Identification Number. When applying for a Din, you wish to yield the Spice Form, a DIR-3 Form, and the DIR-6 Form.
2. Legal Name
Once you have registered for DSC and DIN, it is essential to register the organisation’s name. You will be required to fill out and submit the eForm INC-1 yourself. Key points to keep in mind when filling out the form are:
- The name cannot match the name of another existing company registered under the 2013 Companies Act.
- The name you plan to register should not indicate any sponsorship from the central government.
- When filing the form, you must enter your DIN number. If you don’t have a DIN yet, you can use your PAN or passport number instead.
3. Approval form INC 12
Once the name of your organisation has been affirmed, you have to submit Form INC 12. This frame is an application for a permit under section 8 of the 2013 Companies Act.
4. Issuing the Licence
Upon filing, the form undergoes verification by the Registrars of Companies. To ensure a smooth registration procedure, you need to file the INC-12 form with the following documents.
- Memorandum of Association (MoA) / Articles of Association (AOA) Form INC 13 with photographs
- A notarised declaration form INC-14 and INC-15 need to be submitted by the candidates.
- A three-year account statement with projected income and expenses.
- A list of directors and other top management officials.
- Once all of the above documents are verified, the RoC will issue your licence.
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5. Incorporation of the company with SPICe form INC-3
The Simplified Proforma for Incorporating Company Electronically, an e-form required for a company’s incorporation. SPICe, as it’s more commonly known, requires the following details upon application:-
- Information about the company, such as the capital structure or address.
- Directors are required to submit details including their name, PAN, address, and other proofs.
- Mention the date, place, and mode of your stamp duty payment.
- Your company needs PAN and TAN numbers as well. Upon filing for incorporation, include your brand’s Area and Range Code, and AO No details.
- Optional attachments include your company’s investment details and EPF / IEC registration details.
7 Easy Steps on How to Start an NGO in India
Step 1: Figuring Out Your Goal
The primary step in beginning a successful NGO is to clearly identify what cause you’re passionate about and what goals you hope to achieve to promote that cause. From there you’ll decide how much need there is for your NGO. There may be dozens of NGOs already working in the area you are interested in that may need your support. Or you may find few organisations are addressing your cause directly. Ideally you want to be filling a gap in the current NGO market.
If you haven’t already, be sure to work or volunteer for an NGO in a related area to gain knowledge and experience before starting your own. This will also help you find potential team and board members for your organisation.
And, consider taking one of the many free NGO courses available online to better understand NGO structure, governance and other key concepts.
Step 2: Create a Plan
Creating a plan for your NGO helps you clarify your vision and goals so you’ll be successful. In your plan you’ll explain the purpose and goals of your organisation. These need to be realistic and achievable.
Work for world peace isn’t something that one NGO can handle. Your plan ought to include a particular vision statement, a list of objectives and the steps you’ll take to achieve them. This statement is key since it’ll likely be the backbone of your website and fundraising efforts.
Your vision statement and overall plan ought to reflect the research you’ve done on the challenges, history, politics and other components that are related to and affect the cause you’re supporting and the activities you’ll be taking.
Step 3: Recruit Your Board of Directors
Surrounding yourself with specialists on accounting, raising money, management, marketing, innovation, and other zones is key to run a fruitful NGO. That’s where your board of directors comes in. You need a group that offers your vision and will give the expertise you’ll ought to make that vision come true. Having a board is additionally a vital component for registering and running a nonprofit organisation.
Step 4: Register Your NGO
To make your NGO legal, you’ll need to register. Applications usually require basic information such as name, purpose, board members and organisational structure. You also may find drafting Articles of Incorporation and Bylaws a necessary part of registration. And this may also be a good time to get any necessary permits and/or licences you need to operate.
Step 5: File for Tax Exempt Status
Because NGOs are by definition nonprofit organisations, they almost always qualify for federal and state tax-exempt status. In addition, many NGOs qualify for 501(c)(3) status, which allows donors to take their contribution as a tax deduction.
Applying for tax-exempt and 501(c)(3) status via the IRS can involve some time and paperwork (your legal counsel can help). And in some states, you’ll need to be registered with a state charity official. For instructions and guidelines check out the IRS website.
If you’re not ready to file for tax-exempt status yet, consider asking an established NGO to sponsor you under its umbrella. Tax-deductible donations and grants go to your host, care of your NGO. You receive the funds and your donors are still able to get the tax write off.
Step 6: Develop a Great Website
A compelling, inviting website is one of the best ways to convey your mission and attract donors. Don’t skimp on a good designer and a seamless user experience. This will be the place you send anyone you and your staff encounter to learn more about your NGO and potentially contribute.
Step 7: Create a Budget
Your mission is solid, your paperwork is done. Now it’s time to figure out how much money you may need to support your projects, operations, staff salaries and other overhead costs.
NGOs are regularly fueled by volunteer workers, but that doesn’t mean you won’t require a solid operating budget to manage those volunteers. In fact, many NGOs have budgets in the millions, even billions of dollars. Understanding exactly how much money you’ll need to keep the doors open, manage volunteers and continue to fundraise is vital to making your NGO successful.
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Final Words
Starting a non-profit organisation requires thorough planning, dedication, and a solid commitment to social change. From identifying your reason to getting financial support and setting up a capable team, every stage is significant for the success of your organisation. Remaining dedicated to your goals, abiding by laws, and efficiently utilising resources will result in creating a long-lasting NGO that has a substantial influence. Remember, the travel is challenging but fulfilling, as your efforts contribute to addressing pressing social issues and improving the lives of those in need. Your energy and perseverance are key to driving long-term change.
FAQs
Can I start my own NGO?
Yes, under the required circumstances, it is necessary for two people to register a trust. A minimum of seven people is required to set up a society in accordance with the Societies Registration Act. To set up a section 8 private limited company, you must have at least 2 directors.
Do NGOs pay taxes in India?
NGOs registered under Section 12A of the 1961 Income Tax Act are not obligated to pay charges on their incomes. Charitable organisations are required to designate a specific portion of their profit towards their mission in order to qualify for exemption. Therefore, the majority of companies will proceed to pay taxes as normal unless they qualify for one of the conditions mentioned above.
How do NGOs make money?
NGOs generate the majority of their revenue from Grants and Donations, Sales of Goods and Services, and Government Initiatives and Projects.
