What are NGO companies?
WHAT IS NGO? Non-governmental organizations are non-profit organizations which don’t depend upon the government for its functioning and support, although they might receive the government aid sometimes. Motive of such organizations is to aid in international development and philanthropy. There are two types of NGOs, as recognized by the World Bank i.e.
- Operational NGOs: motive of such NGOs is to design and implement developmental projects.
- Advocacy NGOs: these NGOs work for a specific cause of society and seek to influence public policy.
Beyond the broad categories, there are other NGOs which contribute to the society. For example, certain research bodies conduct operational programs in lieu of creating awareness and knowledge in the society in the arenas of academic, political, non-political issues. Numerous professional bodies, recreational groups and associations of companies also conduct programs to build economic interests and status of the society.
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What are examples of NGOs?
Some of the top NGOs in the world are:
- Bangladesh Rehabilitation Assistance Committee, which aims to create opprotunities for individuals to realise their potential.
- Transparent Hands which is considered as one of the biggest crowdfunding platforms in the world.
- The Wikimedia Foundation which disseminates information to contribute to the growth of the society.
- Acumen Fund is a New York based organisation which helps start-ups with seed money.
- CARE international which addresses issues of global poverty and female empowerment.
There are many NGOs all over the world such as IRC, Barefoot College, Landesa, Once Acre Fund, Clintion Health Access initiative, etc., who always insists on development of society and world in general.
What is meant by NGO in India?
According to the laws of the land, Non-Governmental Organization can operated either as a trust, company or society.
- Trust registration: NGO is formed when the owner of a property approves that entire benefits reaping from the property will be used for the betterment of the society. The trust is built with the prospective of using their own assets to elevate the status of the society. It doesn’t, generally, have fixed beneficiaries. However, it is irrevocable without legal interference. To register a trust, identification proof of two members along with electricity/water bill is necessary.
- Society registration: NGO is formed with a valid Memorandum of Association, guidelines and regulations. Further it is also registered with the Registrar of Society/Commissioner of Trusts. It has the privilege to alter the MOA from time to time. Society’s name, proof of address, memorandum of association, by laws, and identification proof of nine members are essential for registration of a society.
- Company: such NGOs require valid MOA and AOA. They are registered under the Registrar of Companies of the Central Government. The process is parallel to the incorporation of Public/Private Limited companies. Company’s proposed names, address proof of the office, Identification proof of the directors, Memorandum of Association and Articles of Association are required for registration.
How it works?
The NGOs are created for significant purpose or cause that the members strongly support. They are created by union of like-minded individuals who collectively wish to serve the society. These unions function as autonomous bodies, forming their own set of regulations and policies, depending upon the nature of cause. By the very name, it is apparent that this organization isn’t motivated for pecuniary benefits, rather they seek empowerment of the society. Major functions of NGOs are listed below:
- Advocacy: many individuals shy away from expressing their social issues outright due to fear of judgment and ignorance of government. They are unable to attract the general public towards the grave human right violations. Herein, the NGOs lend support by reporting such violations, legal injuries, pressurize the government to take steps and creates awareness. They aim on triggering the issue so as to bring out grievances of the injured out in the public. This further creates public interest and changes are more likely to happen. Amnesty International is the greatest example of advocacy NGO as it had drawn attention to many human right issues of the world.
- Researching and monitoring human rights abuses: these are the primary functions of an NGO. They conduct large scale surveys, collect data and analyses the pattern of human rights violations and look ways for mitigating the same.
- Promoting sustainable development: to address issues concerning human rights, sustainable development is essential. Hence, UN has adopted 30 Sustainable Development Goals, which are being supported by many NGOs. They provide fund for local economic sustainable projects, create awareness about the same, try to bring gender parity and reduce racism.
- Providing aid to the ailing: NGOs are well known for taking upon humanitarian, relief oriented causes. Many organizations work for providing aid to the people affected by natural disasters, famine, armed conflicted. By providing food, water, basic clothing. Red Cross is one such NGO which aims to protect victims of international as well as internal armed conflicts.
- Working towards social justice: Social Justice aims to bring equality in wealth, opportunities, and privileges within a society. It also includes opportunities in the basic facilities such as housing, employment and health. NGOs are engaged in creating such facilities by way of greater healthcare access, gender equality, and equality in employment, LGBTQ+ rights.
How do NGO workers get funded?
Through various schemes and policies, NGOs become eligible to get grants and financial funding. Funds are accrued through private donations, loans, grants and combinations of membership dues. The organizations also conduct fundraiser events, apply for grants and tenders for funding. Even government organizations seek out to grant such funds to the NGOs.
To qualify for funds and grants, the NGOs have to fulfill certain conditions, namely:
- It must be registered with proper constitution and Memorandum of Articles.
- The organization must be well organized comprising of Governing and Executive body.
- It must not be formed with a commercial motive, for gaining profits.
- It must be a secular and democratic organization and shall not discriminate any person on the basis of sex, caste, creed, religion or area.
- It can’t directly get engaged for the interests of any political party.
- It must eschew violence.
- It must showcase the activities and programmers in light of the social issues and conduct such performances to support needy individuals.
- It must gain trust by presenting the previously performed activates and programmers and build its profile.
- If the NGO wishes to get funds from private ad international grant agencies, it has to present the previous performances along with the track record of the funds.
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