What is the definition of NGO in India ?

Non-Governmental Organizations can be defined as such organizations or association of people or agencies having fixed and definite cultural, educational, economical, religious and social associations. NGO or Non-Profit Organization (NPO) are the non-profit establishments or non-profit entrepreneurship of individuals. These kinds of organizations are not owned by a single entity and hence cannot have the distribution of profit per se. The economic profit that they might earn from any or substantial ventures by them are distributed or reinvested or viably spent on further non-profit activities. But questions might arise as to how an NGO or NPO gain their income or what sources of revenue do they have in general?
The NGOs have a fixed or flexible source of revenue from donations, membership fees, interests and dividends on investments. All the NGOs have a basic orientation of tasks divided on a variety of grounds such as bringing resident issues to the Governments, awareness about certain policies and individual or group interests, humanitarian services, encourage political participation through varieties of awareness programs and simulated campaigns through their niche. While some NGOs have general tasks at hand, some are particular about their involvement in society through human rights, environment or wellness activities. NGO Registrations can be a daunting task but can be made easy through particular awareness. It is here that they offer a variety of analysis and experience while also functioning as caution mechanisms. They also keep track while also implementing international agreements between India and other countries. In this way, the functioning and relationship with various agencies of United Nations are kept professional depending on the goals and mandate of the particular organization.
The NGOs in the country can be registered under the following Acts –
i. Indian Trust Act, 1882
ii. Societies Registration Act, 1860
iii. Companies Act, 1956, u/s 25
iv. Charitable and Religious Trusts Act, 1920
v. Sikh Gurdwara Act, 1925
vi. Trustees and Mortgagees Powers Act, 1866
vii. Wakf Act, 1995
viii. Indian Trustees Act, 1866
ix. Religious Endowment Act, 1863
A Non-Profit Organization or NGO can have varieties of benefits and one such benefit is the tax exemption. To avail such benefit, the NGO must get itself registered and abide by certain other procedures. AAS does not provide any such benefit to the people or organizations making donations to it. The exemption to the Income Tax is made through the Income Tax Act 1961 which provides benefits to the donors. It is done through 35Ac where the donors get 100% tax exemption and through 80G where the donors get 50% exemption.
In our country, the Non-Profit Organizations or Public Charitable Trusts or such companies can be registered as: Trusts, Societies, or a personal Limited Non-Earning Business under Section 25 of the Companies Act, 1956. These NPOs in our country have existed as independent and have no interference of the state. These NGOs have self-governance bodies through a board of trustees or handling committees. The governing council is made up of people or members who have fiduciary abilities and can produce perks for others. These people are generally not the members of the NGO.
The Section 2 (15) of the Income Tax Act, 1961 has its application seen throughout of the country irrevocably and homogenously. It defines the NGOs as having the charitable purpose to consist of ‘relief of the inadequate, education, clinical relief and the advancement of any other object of general public energy’. There are many activities that cannot be called charitable. One such activity is religious teaching or worship. Hence, to see if the activities of the NGOs and NPOs are charitable, one must see if the activities have a beneficiary function to the general purpose.
An open altruistic capacity or Registration of NGOs need to profit a large number of people separated from pointed out people. Associations which don’t have general society viewpoint, for example, trusts for the perks and living conditions of laborers in the factories or staff individuals from an organization, cannot be treated as charitable functions and hence do not fit to be valid. For whatever length of time that the recipients of the organization make up a changing and questionable body of the overall population noting an explicit depiction, the way that the recipients may have a place with a specific religious confidence or a group of people of a specific profound influence, would not affect the association’s ‘open’ character. Such trusts, societies, and companies with section-25 category require to give all classifications equal therapy to grant 80G Certificates. It is noteworthy that all foreign contributions to any Non-Profit Organizations would be governed under FCRA Protocol under the Home Ministry and any such violations lead to criminal prosecutions.
Therefore, it must be clarified that this material would only provide broad standards of operation and hence the companies or any party must also confirm the same to legal advisors or financial experts at broad lengths before taking any such measures.
Types of NGOs
a) Trusts
A Trust is a type of Non-Governmental Organization who have been licensed under the Indian Trusts Act of 1882. It takes only around 15 days to form a legal trust through AAS. A minimum of three members would be required to form a trust while relatives can also be engaged as members of the trust by the individual leading it. While the minimum number can be three, the maximum number can be around 21. You can classify the Trustees as President, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer and so on. To register a trust in Delhi, the main founder of the Trust must have in possession of Aadhar Card with the electricity bill or water bill from the Delhi Jal Board to confirm the permanent address of the founder at the main office. Each member of the trust must give two photographs along with their Id proofs and address proofs. The address proof can range from voter Id cards to driving license to passport to any other valid governmental photo id card.
b) Society
A society can be defined as a type of NGO which is registered under the Indian Societies Act 1860. The requirement of the validation is the same as that of the Trust formation. The only difference between the Trust and Society is that Family members cannot form a society together while they can form a trust. In a society, the minimum number of members can be seven and all the seven members must be different state or nationalities. The development of society might generally take up to 1.5 months to 2 months time.
c) Section 25 Company
The section 25 company can be understood as a Non-Revenue Assortment which is licensed under the Indian Companies Act of 1956. Section 25 companies can be formed as private entities or public business with a strict obligation. It can be registered with or without capital. To set such a company, a minimum of three members would be required while there is no cap to the uppermost number of members in such a company. There has to be single management acknowledged by the board of directors. Though these kinds of companies are not signed up by the Registrar of Companies, the funds of these companies can only be used for social welfare tasks only.