Non- Governmental Organization

Table of Contents

Introduction

NGO means A Non- Governmental Organization. It is a non-Profit group which are functioning independently of any government. Sometimes NGOs are also called civil societies because it was organized to serve a social or political goal such as humanitarian causes or the environment on the community, national and international level. It plays a major role in international development, aid and philanthropy. The term can encompass many types of organ organization similar to an NGO may be called non-benefit, a noble cause, non-benefit association (NPO), common society association (CSO), resident area association (CSO), social advantage association (SBO), a support association, wilful organization, etc.

What is NGO?

Ngo is the short form of Non-Governmental Organization. NGO works for the benefits of the society at large, which might incorporate annihilating destitution, giving food, instruction, clinical help maintainable development protection of the Environment at Large. NGOs can be in the type of Trust to be enlisted under Trust Act, 1882, Society to be enlisted under Societies Registration Act, 1860 or segment 8 organization to be registered under the Companies Act, 2013. NGOs are also contributing to the social development of India.

How NGOs are Funding: As non-profits, NGOs depend upon a many sources for funding which are given below:

Membership dues
Private donations
The sale of goods and services
Grants

Some NGOs mainly depend upon government funding. Many NGOs may have budgets in millions or billions of dollars.

Types of NGOs

There are many types of NGOs but some are given the following:

INGO: It means an international NGO. For instance, the Conference of INGOs of the Chamber of Europe is involved more than 300 taking part in INGOs.
GONGO: It means government-organized NGO, often derogatory. Foreign Policy describes GONGOs as administration-supported NGOs put in a position to advocate for the sake of a harsh regime in the international arena.
QUANGO: A QUANGO is a quasi-autonomous non-governmental organization that depends upon public funding. The senior officers of the NGOs are appointed by the government.
ENGO: It is an environmental NGO, for example, Greenpeace or the World Wildlife Fund. These groups operate internationally to advocating for the environment mainly.

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Functions of NGOs

NGO works to improve the welfare of the Society at large. They are many functions of NGOs but some functions of NGOs are given below:-

Eradication of Poverty
Promote Education
Protection of Environment
Wildlife conservation
Awareness about human rights
Providing Health and Nutrition
Old age homes
Adoption homes
Homes for women
Women empowerment

The member of NGOs identifies the problems in society and members of the NGOs solve them. The members of NGOs work with the objective of charitable motive only. There is no self-interest involved who are working in NGO. The main of the NGO is to work for the poor people who are suffering from any natural calamities. The government of India framed rules and regulations for the performance of these organizations.

How does an NGO make money?

NGOs can accept donations from private individuals, companies, charitable foundations, and governments, whether local, state, federal, or even foreign. As non-benefit substances, they likewise can charge membership dues and sell goods and services.

Amendment in Income Tax Act, 1961 for the donation of NGOs

Income tax has made filing the Statement of Donations received during the previous financial year (in Form 10BD) is mandatory. New rule 18AB of Income Tax rule which is applicable to all the entities that have approval u/s 80G and u/s 35(1) of the Income Tax Act, 1961 which allows the tax deductions for donors. Donor submit the statement of donations which is required to be filed before 31st May 2022 for the FY 2021-22.

Required Details

Donor’s Name
Benefactor’s ID and ID Proof (PAN/Aadhar/Passport/Driving License)
Date of issue of the above ID by the equipped power
Address of the Donor (Donor incorporates: Individual Indian, NRI, OCI, Foreigner, Company,
Gift Type (E.g., Corpus, Specific/Restricted Grant, and so on.)
Method of Receipt (Cash, check, Electronic, and so forth.)
Amount (In INR)

After filing the Statement of Donations in Form 10BD the income tax department issue the Certificate of Donations in Form 10BE in which contains all the details of the NGO like PAN card and Name of the NGO, approval numbers u/s 80G & 35(1) along with details of the donations and donor.

Penalty (for non-compliance)

Every organization is mandatory to submit the Form 10BD and if it failed to submit this form within the time then it may be submitted with a fine of Rs.200 per day of delay according to the newly inserted section 234G of the Income Tax Act,1961. According to section 271k of the income tax act,1961 if the donor fails to submit the statement of donations in form 10BD then he may be imposed a penalty which shall not be less than Rs.10,000 and it extends up to Rs.1 Lakh.

Conclusion

It concluded that NGOs are non-Profit groups which are functioning independently of any government. Sometimes NGOs are also called civil societies because it was organized to serve a social or political goal such as humanitarian causes or the environment on the community, national and international level. It plays a major role in international development, aid and philanthropy. NGOs can be in form of Trust to be enrolled under Trust Act, 1882, Society to be enlisted under Societies Registration Act, 1860, or section 8 company to be registered under the Companies Act, 2013. NGOs are also contributing to the social development of India.

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