An organization that uses its funding for the welfare of others is known as a non-profit organization such as hospitals, schools, and NGOs. Today, we learn about how to set up an NGO. Typically, there are three types of NGOs Section 8 Company, Trust, and Society. This article focuses on the latter two, the more common forms of non-governmental organizations.
- What is a Society?
The more modern form of NGO, a Society includes seven people who band together for one purpose and form a general body. The persons involved can be foreigners or Indian. Further people can be added to the Society, and every member of it has the right to give one vote.
The Societies Registration Act of 1860 governs every Society. It can be used in its original or amended form. The actual governance requirements differ from state to state, but there are some common aspects:
- Every year, a list of the governing body members has to be filed.
- Audited accounts may have to be filled, too. It should be noted that the Act doesn’t require any mandatory filing.
- Members can be paid employees of the Society barring in the state of Tamil Nadu.
A society is best applicable for purpose with a state-level objective.
- How is Society Registration online done?
There are two places where a society can be registered:
- The Registrar of Societies’ office at the state level or the local level.
- The District Magistrate’s office at the district level.
For Society registration, along with the application, the following documents have to be submitted:
o The rules and regulations of the society
o Memorandum of Association (MoA)
o On a non-judicial stamp paper, a sworn affidavit either by the secretary or the Society’s president. The affidavit should have court fee stamp.
o Letters of consent letters from every member of the managing committee. Authority letter signed by every member.
o A declaration stating that the financial assets will be employed to promote the goals of the Society. The managing committee members make it.
- What is a Trust?
The oldest form of setting up a charitable organization is a trust. They can be either Public or Private. They are created for the benefit of a small group of known persons or a family member. While a Private Trust is under the purview of the Indian Trust Act 1882, a Public one is governed by common law. Only two states, Gujarat and Maharashtra, Public Trusts, are formed and registered within the Bombay Public Trust Act 1950.
Trusts are the easiest to create and operate because they lack regulatory oversight, though all disputes go to court for resolution. Trusts do not need to file accounts or fulfill any regulatory requirements. If the trust deed must be changed, it can be done only by the settlers. If they are not available, then the court makes the necessary modifications.
- How is trust registration done?
The form for the Trust registration is submitted to an official with authority over the area where the Trust is being formed. The form should have a court fee attached to it. A registration charge is also required to be paid. The amount of which depends upon:
- Value of Trust office
- Value of Trust property
- Location of the Trust
The Trust applicant put his/her signature on the form in -front of the:
- Regional officer
- Deputy registrar
The last step of the process includes submission of:
- the application
- a duplicate of the Trust Deed
- consent letter
The choice of NGO registration, be it Trust or Society, are dependent upon several factors. Just like a truck can be used for a number of things from transporting goods to carrying people, an NGO can be utilized for a lot of objectives.
Consider every factor before registering a Trust or Society. Consider the information given above as a guideline only. For expert advice, always consult legal or financial professionals.