NGO Full Form
What is the full form of NGO?
NGO stands for Non-Governmental Organisation. An NGO is any non-profit, volunteer group of people formed to address issues such as social structure, children, the poor, the environment, and so on. NGOs aim to improve socioeconomic conditions and empower people. An NGO is neither a non-governmental organisation nor a for-profit corporation. NGO is also abbreviated as NPO (the non-profit organisation). It might be organised on a local, city, national, or international scale. NGOs are run by no one and are therefore unable to distribute money or profits in this manner. Whatever profits they make from their business will be reinvested or invested in appropriate non-profit projects.
Types of NGOs
NGOs are classified based on their level of activity and orientation.
NGO classifications depending on orientation include:
Orientation Toward Charity: Charitable orientation is defined as a paternalistic endeavour with limited engagement from the "beneficiaries." It comprises non-governmental organisations (NGOs) that undertake campaigns to satisfy the needs of the poor, such as giving clothes, medication, food, housing, education, and transportation. Such non-governmental organisations (NGOs) also play an active role in assisting individuals in need following natural catastrophes.
Orientation to Participation: Because they entail the deployment of a project by locals who offer resources such as money, land, equipment, labour, and materials, self-help initiatives serve as a paradigm for participatory orientation.
Motivating Attitude: The Empowering Orientation is a movement that aims to aid individuals in need by building an understanding of the social, political, and economic factors impacting their lives and firmly establishing their awareness of their ability to influence those circumstances.
Service-oriented organisations include those that organise campaigns to promote family planning, health, and education. These activities are organised into programmes that require people's active participation to guarantee smooth implementation.
Registration of an NGOs
In India, NGOs can be registered under the following laws:
The Indian Trust Act of 1882 established the trust: Trusts are chosen by NGOs with highly restricted membership or by permanent institutions such as orphanages/old age homes since they are irreversible and cannot be amended or dissolved without the beneficiary's approval." While there is no central act that oversees trusts, several states do control public trusts and, by implication, non-governmental organisations (NGOs).
Society established under the Societies Registration Act of 1860: Societies are member-based organisations governed by a committee elected by the members under self-determined norms. The Societies Registration Act of 1860 governs the registration of societies.
Section 8 of the Companies Act of 2013: Businesses are limited liability companies founded to promote public goals and the general welfare of society. This is a preferred style of organisation that inspires trust in both the government and contributors, as governed by the Companies Act of 2013.
Welfare issues have long been the realm of governmental actors, with limited room for private enterprises to get in. However, there has recently been a tremendous expansion in the participation of Non-Governmental organisations (hereafter "NGOs") in a space that has hitherto represented sovereign interests. In India, these private entities often exist in one of three legal forms: trusts, societies, or companies registered under Section 8 of the Companies Act, 2013. NGOs are advocates for issues, both social and economic. NGOs are typically supposed to operate without profit (notably, Section 8 companies are prohibited from paying out dividends, and are expected to reinvest profits back into the promotion of their objects). However, as an NGO represents an active member of civil society, NGOs are often granted certain tax benefits.
Features of NGOs
NGOs are different organisations, and their characteristics are mostly formed by a country's socioeconomic, cultural, political, and legal context. However, in general, the following characteristics are shared by NGOs in the majority of nations throughout the world.
Non-profit in operation: An NGO is not intended to make a profit for personal advantage. If an NGO engages in a revenue-generating activity, the profits gained should not be dispersed to board members, but rather utilised to grow NGO operations.
Values: An NGO should address a social, cultural, economic, or political issue and strive for the greater good. NGOs are non-profit organisations that are run entirely by volunteers. They were founded by a group of like-minded volunteers who came together to address a similar problem.
Legally registered: While there may be unregistered NGOs working for a cause, it is generally required in most countries for an NGO to be legally registered. Furthermore, only officially registered NGOs are eligible for formal donations.
Non-criminal: Non-governmental organisations (NGOs) do not engage in anti-social or criminal activity.
Benefits of NGOs
Get a tax deduction: Registering the firm as an NGO under the Companies Act of 2013 allows it to take advantage of many tax breaks. NGOs are free from a variety of taxes, allowing the organisation to reinvest the money saved in future projects.
Possession of assets: When your organisation is properly registered, it can purchase land, hold fixed assets, and/or incur obligations under its common seal. It is illegal for an unregistered organisation to purchase, possess, or sell land anywhere.
There is no requirement for a minimum share capital: To act independently, no minimum share capital is required. NGOs can be directly sponsored through donations given to them. This implies that NGOs do not require a large share capital to operate autonomously.
Personal liability protection: You can purchase, acquire, and register assets and stakes in your NGO's name. This is a method of shielding your company from infinite responsibility in the event of an unfavourable situation, such as foreclosure, bankruptcy, judgement debt, or divorce, among others.
Ownership transfer: NGOs formed under the Companies Act, 2013, are not prohibited from transferring their ownership or rights to the interests generated under the Income Tax Act, 1961.
Stamp duty exemption: Section 8 corporations as NGOs are free from stamp duty under the Income Tax Act, resulting in greater tax-saving strategies for the firm. All of the taxes saved by stamp duty are subsequently spent on the advancement of the company's goals.
Organised financial strategy: Having an NGO might provide a tax-free method for acts carried out under the registered NGO. NGOs are non-profit organisations that are tax-exempt. You can create a structured financial strategy that permits the group to operate tax-free.
Entity stability: The registration of your organisation might imply that you have competent and accountable leadership in place, which the public will see. Political parties, governments, donor agencies, financial institutions, charitable groups, and other non-governmental organisations (NGOs) would seek to collaborate with a recognised organisation to achieve mutual goals.
Indefinite succession: This suggests that an NGO has an infinite lifespan and will continue to exist even if the founders/trustees die or quit the NGO. The organisation will only cease to exist if it is properly wound up by an Order of Court of India. This, among other advantages, may allow for eternal succession.
Credit admission: The registration of an NGO allows access to loans from lenders and financial institutions. A lending facility can be used to promote the organization's operations, fund a mortgage, or buy land or fixed assets. Banks will need documentation of registration as a condition precedent before making a loan.
Establishing a bank account: Opening a business account with a bank for the NGO may indicate its financial transparency. Some private individuals, governments, donor agencies, and other non-governmental organisations (NGOs) will be hesitant to write you a check in your personal name for your organization. A bank account for the NGO would indicate the organization's corporate existence and readiness to accept donations. To open such an account, you must provide proof that your organisation is registered.
Activities Undertaken by NGO
The following are the activities carried out by the NGO:-
Advocacy and Raising Awareness NGO is a voice for all people. Researching, analysing, and informing the public about current issues, as well as organising citizen action through media campaigns and other forms of activism. Brokerage NGO serves as an intermediary between diverse sectors and groups. Conflict Resolution NGO acts as a mediator and facilitator in the resolution of conflicts. The Building Capacity NGO offers free education, training programmes, and other resources. Service Provision
Its primary mission is to provide important humanitarian and social services.
Monitoring and evaluation: An NGO functions as a "watchdog" or impartial "auditor" of government and corporate performance and accountability.
Frequently Asked Questions (FAQs)
Non-governmental organisations, or NGOs, play an important role in international development, assistance, and philanthropy. NGOs are frequently non-profit organisations with annual expenditures in the millions or billions of dollars. NGOs may, for example, focus on activities involving health or health emergencies, education, infrastructure, minority rights advocacy, poor support, and crime reduction. NGOs are funded by a number of sources, membership dues, including individual donations and government subsidies.
NGOs must be registered so that the government can keep track of the funds collected and spent, as NGOs often obtain exemptions because they work for the welfare of society.
Non-profit organisations (NGOs) are non-profit organisations that rely on a range of funding sources to meet their operational expenditures. The funds are critical because they support both short- and long-term goals and keep non-governmental organisations running. In other words, fundraising efforts are critical to the success and sustainability of non-profit organisations. NGO financing is obtained through the sale of goods and services, membership fees, charitable foundations, for-profit firms in the private sector, state and federal governments, grants from municipal and private donors, and membership fees.
Private individuals are a significant source of funding for non-governmental organisations. Some of this money comes from wealthy individuals, although NGOs rely considerably more on small donations than on a few large ones. Despite their autonomy, many NGOs rely heavily on government funding to operate. Some government support for NGO funding may be considered problematic since it may promote specific political goals rather than a country's development goals. These are some of the ways NGOs can raise funds.
Events
Network Fundraising
Personal Solicitation
Fundraising on the Internet
Donations in Kind Volunteering
Raising Funds Through Young People and Schools
Donations made on a regular basis through the adoption of a project collection
Sales of Products
Corporate Collaborations
Crowdfunding
While there is no established or official definition of NGOs, they are often characterised as nonprofit organisations that are independent of government control (although they may receive government funding).
As of September 2016, BRAC was the world's largest non-governmental development organisation in terms of personnel count. BRAC is a Bangladesh-based multinational development organisation. BRAC was afterwards registered with the Government of Bangladesh's NGO Affairs Bureau in order to collect international donations. As of September 2016, BRAC was the world's largest non-governmental development organisation in terms of personnel count. BRAC was founded in 1972 following Bangladesh's independence by Sir Fazle Hasan Abed and is present in all 64 districts of Bangladesh as well as 11 other countries in Asia, Africa, and the Americas. BRAC claims to employ approximately 90,000 employees, about 70% of whom are women, and that its services reach over 126 million people. The organisation is partially self-funded through a variety of social enterprises, including a dairy and food project, an Aaron chain of retail handicraft stores, a seed and agribusiness, and poultry. BRAC operates in 12 countries throughout the world.