Procedures to Registering a new NGO (Non-Governmental Organization) in India

Registering a new NGO (Non-Governmental Organization) in India involves several steps and can be done under different legal frameworks depending on the type of organization and its activities. The most common forms of registration are as a Trust, Society, or Section 8 Company. Below is a general guide to registering an NGO in India:

---

1. Decide the Type of NGO

Choose the legal structure that best suits your NGO's objectives:

• Trust: Governed by the Indian Trusts Act, 1882. Suitable for charitable activities.

• Society: Governed by the Societies Registration Act, 1860. Suitable for cultural, educational, or social activities.

• Section 8 Company: Governed by the Companies Act, 2013. Suitable for promoting commerce, art, science, religion, charity, or any other useful purpose.

---

2. Choose a Name for the NGO

• Ensure the name is unique and not already in use.

• The name should reflect the NGO's mission and objectives.

---

3. Prepare the Required Documents

The documents vary depending on the type of NGO:

For a Trust:

• Trust Deed (containing the name, objectives, address, details of trustees, and rules/regulations).

• Proof of identity and address of the settlor and trustees (e.g., Aadhaar, PAN, Voter ID).

• Passport-sized photographs of the settlor and trustees.

• Registered office address proof (e.g., electricity bill, rent agreement).

For a Society:

• Memorandum of Association (MoA) and Rules & Regulations.

• List of governing body members (President, Secretary, Treasurer, etc.).

• Proof of identity and address of members.

• Registered office address proof.

• Consent letters from members.

For a Section 8 Company:

• Memorandum of Association (MoA) and Articles of Association (AoA).

• Declaration from directors.

• Proof of identity and address of directors.

• Registered office address proof.

• Digital Signature Certificate (DSC) and Director Identification Number (DIN) for directors.

---

4. Register the NGO

For a Trust:

• Submit the Trust Deed to the local Registrar of Trusts.

• Pay the required registration fee.

• The Registrar will verify the documents and issue a registration certificate.

For a Society:

• Submit the MoA, Rules & Regulations, and other documents to the Registrar of Societies in the respective state.

• Pay the registration fee.

• Once verified, the Registrar will issue a registration certificate.

For a Section 8 Company:

• Apply for a name approval through the Ministry of Corporate Affairs (MCA) portal.

• File the incorporation form (SPICe+ form) along with the required documents.

• Pay the registration fee.

• Once approved, the Registrar of Companies (RoC) will issue a Certificate of Incorporation.

---

5. Apply for PAN and TAN

• After registration, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the NGO.

---

6. Open a Bank Account

• Use the registration certificate and PAN to open a bank account in the NGO's name.

---

7. Apply for Tax Exemptions (Optional)

• To avail tax benefits, apply for:

  • 12A Registration: Exempts income from tax.

  • 80G Registration: Allows donors to claim tax deductions on donations.

• Submit the application to the Income Tax Department.

---

8. Compliance and Reporting

• Ensure compliance with annual filing requirements, such as:

  • Filing audited financial statements.

  • Submitting annual reports to the Registrar of Societies/Trusts/RoC.

  • Maintaining proper books of accounts.

---

Key Points to Remember

• Consult a legal expert or chartered accountant for guidance.

• Ensure transparency and accountability in the NGO's operations.

• Keep all documents and records updated.

By following these steps, you can successfully register and operate an NGO in India.

How an NGO can Filing of eForm CSR-1

Filing eForm CSR-1 is a mandatory process for NGOs in India that wish to receive CSR funding from companies. This form registers the NGO with the Ministry of Corporate Affairs (MCA) and allows companies to identify and engage with them for their CSR activities. Here's a step-by-step guide on how an NGO can file eForm CSR-1:   

1. Ensure Eligibility:

• Legal Entity: The NGO must be a registered legal entity in India, such as:
  • Section 8 company under the Companies Act, 2013  
  • Registered Trust
  • Registered Society  
• Registration under Income Tax Act: It should have a valid registration under Section 12A and 80G of the Income Tax Act, 1961.
• Experience: The NGO needs to have a minimum of 3 years of experience in undertaking similar activities.  
• Financial Records: Maintain clear and transparent financial records with proper accounts and audits.
• Legal Compliance: The NGO must not have been blacklisted or involved in any illegal activities.

2. Gather Required Documents:

• Registration Certificate: Copy of the NGO's registration certificate (e.g., Section 8 company registration certificate, trust deed, society memorandum).
• PAN Card: Copy of the NGO's PAN card.  
• 12A and 80G Certificates: Copies of the Income Tax exemption certificates.  
• NGO Darpan ID: If the NGO is registered on the NGO Darpan portal.  
• PAN of Authorized Signatory: PAN card of the person authorized to sign the form.  
• Digital Signature Certificate (DSC): DSC of the authorized person signing the form.  
• Resolution Authorizing the Person: Copy of the resolution authorizing the person to sign the form, along with the resolution number and date.  
• Company CSR Policy and Report (if applicable): If the NGO has a CSR policy and report, include it.  
• Details of Subsidiaries and Other Entities (if applicable): If the NGO has subsidiaries or other entities involved in CSR activities, provide their details.

3. Online Application Process:

• Access the MCA Portal: Visit the Ministry of Corporate Affairs (MCA) portal.  
• Download Form CSR-1: Go to 'MCA Services' -> 'e-Filing' -> 'Company Forms Download' -> Download eForm CSR-1.  
• Fill the Form: Complete all required details in the form, including:
  • Entity information
  • Registration details
  • Contact information
  • Details of the authorized person  
  • Details of subsidiaries (if applicable)
• Attach Documents: Attach the mandatory documents mentioned earlier.
• Obtain Verification: Get the form digitally verified by a practicing professional (CA, CS, or Cost Accountant).  
• Upload Form: Upload the completed and verified form to the MCA portal.  
• Pay Fees: Pay the applicable filing fee online.  
• Track Status: Track the status of your application on the MCA portal.  

4. Verification and Approval:

• The MCA will verify the documents submitted by the NGO.
• After successful verification and approval, the MCA will issue a CSR registration certificate to the NGO. This certificate will have a unique CSR Registration Number.  

Important Considerations:

• Accuracy: Ensure all information provided in the CSR-1 form and supporting documents is accurate and complete.
• Professional Assistance: If needed, seek assistance from professionals like Chartered Accountants or Company Secretaries for guidance on the registration process.
• Compliance: Once registered, adhere to the CSR regulations and guidelines for receiving and utilizing CSR funds.

By following these steps, NGOs can successfully file eForm CSR-1 and become eligible to receive funding from companies for their social initiatives.

How NGOs can scale up their projects using CSR funding?

Securing CSR funding can be a game-changer for NGOs, enabling them to scale up their projects and expand their impact. Here's how NGOs can effectively utilize CSR funding for project scaling:   

1. Strategic Planning for Scaling:

• Define Scaling Objectives: Clearly define your goals for scaling up the project. What do you want to achieve in terms of reach, impact, or geographical expansion?
• Assess Project Readiness: Evaluate if your project is ready for scaling. Is the model proven, effective, and sustainable? Are there any necessary adaptations for larger-scale implementation?
• Develop a Scaling Plan: Create a detailed plan outlining the steps, resources, and timelines required for scaling up. This plan should include:
  • Target Area Expansion: Identify the new geographical areas or communities you want to reach.
  • Resource Mobilization: Determine the additional resources (financial, human, technical) needed for scaling.
  • Implementation Strategy: Outline how you will adapt your project implementation to the larger scale, including any changes in methodology, partnerships, or technology.
  • Monitoring and Evaluation: Define how you will monitor the scaled-up project's progress and evaluate its impact.  

2. Leveraging CSR Funding for Scaling:

• Align with CSR Objectives: Demonstrate to potential CSR funders how your scaling plan aligns with their CSR focus areas and how it will contribute to their social impact goals.
• Highlight Scalability: Emphasize the potential for your project to be scaled up and the long-term impact it can achieve with CSR funding.
• Present a Clear Budget: Provide a detailed budget that outlines the specific costs associated with scaling up, including:
  • Expansion Costs: Costs related to reaching new areas or communities.
  • Resource Costs: Expenses for additional staff, training, equipment, or technology.
  • Operational Costs: Increased operational expenses due to the larger scale of the project.
• Showcase Success and Impact: Share evidence of your project's past successes and demonstrate the positive impact it has already achieved, building confidence in your ability to scale effectively.

3. Building Partnerships for Scaling:

• Collaborate with CSR Funders: Work closely with CSR funders to ensure that the funding is utilized effectively for scaling up your project.
• Seek Technical Assistance: Explore if the CSR funder can provide any technical assistance or expertise to support your scaling efforts.  
• Engage with Other Stakeholders: Collaborate with other NGOs, government agencies, or community organizations to leverage their resources and networks for scaling.  

4. Effective Implementation and Monitoring:

• Phased Approach: Consider a phased approach to scaling, starting with a pilot phase in a new area or community before full-scale expansion.
• Adapt and Innovate: Be prepared to adapt your project implementation as needed based on the context of the new areas or communities you are reaching.
• Monitor Progress: Continuously monitor the progress of your scaled-up project, tracking key indicators and making adjustments as necessary.  
• Evaluate Impact: Conduct a thorough evaluation of the impact of your scaled-up project to demonstrate its effectiveness and inform future scaling efforts.  

5. Communication and Reporting:

• Communicate with CSR Funders: Provide regular updates to CSR funders on the progress of your scaled-up project, highlighting achievements and challenges.  
• Share Success Stories: Share success stories and impact reports to showcase the positive outcomes of your scaled-up project and attract further support.
• Maintain Transparency: Ensure transparency in your financial management and reporting, demonstrating accountability in the utilization of CSR funds.  

By following these strategies, NGOs can effectively leverage CSR funding to scale up their projects, expand their reach, and create a more significant and sustainable impact on the communities they serve.

How NGO cad develop and Submit Proposals for CSR Funding?

Writing and submitting compelling proposals for CSR funding is crucial for NGOs to secure the necessary resources for their projects. Here's a breakdown of the process:   

1. Research and Identify Potential Funders:

• Align with CSR Focus: Thoroughly research companies' CSR policies and identify those whose focus areas align with your NGO's mission and project objectives.  
• Explore Funding Opportunities: Check company websites, CSR reports, and online platforms for information on their CSR initiatives, grant programs, and funding guidelines.
• Networking: Attend industry events, conferences, and workshops to connect with companies and their CSR representatives.  

2. Understand the Funding Guidelines:

• Review Guidelines Carefully: Carefully read and understand the specific guidelines, eligibility criteria, and proposal requirements provided by each company.  
• Adhere to Format: Follow the prescribed format and structure for proposal submission, including any templates or specific forms.
• Deadlines: Pay close attention to deadlines and ensure timely submission of your proposal.  

3. Develop a Strong Proposal:

• Executive Summary: Start with a concise and compelling executive summary that highlights the key aspects of your project and its potential impact.  
• Problem Statement: Clearly define the social issue or need that your project addresses, providing relevant data and evidence to support your claims.
• Project Objectives: State clear, measurable, achievable, relevant, and time-bound (SMART) objectives that outline what you aim to achieve with your project.  
• Project Description: Provide a detailed description of your project, including the activities you will undertake, the target beneficiaries, and the implementation plan.
• Methodology: Explain the methodology you will use to implement your project, demonstrating its effectiveness and feasibility.
• Budget: Present a detailed budget breakdown, outlining how the funds will be utilized and ensuring transparency in your financial planning.  
• Monitoring and Evaluation: Describe your plan for monitoring the progress of your project and evaluating its impact, including the indicators you will use and the methods for data collection.  
• Organizational Capacity: Showcase your NGO's experience, expertise, and track record in implementing similar projects, highlighting your strengths and capabilities.
• Sustainability: Explain how your project will be sustained after the funding period, ensuring its long-term impact and benefits for the community.

4. Craft a Compelling Narrative:

• Storytelling: Use storytelling techniques to connect with the reader and convey the human impact of your project, making it more relatable and engaging.  
• Visuals: Incorporate visuals, such as photos, infographics, and charts, to enhance your proposal and make it more visually appealing.  
• Proofread: Thoroughly proofread your proposal for any errors in grammar, spelling, or punctuation, ensuring a professional and polished presentation.  

5. Submit and Follow Up:

• Submit as per Guidelines: Submit your proposal according to the company's guidelines, whether it's through an online portal, email, or physical submission.
• Acknowledge Receipt: Follow up to confirm that your proposal has been received and inquire about the next steps in the review process.  
• Be Patient: The review process may take time, so be patient and allow the company sufficient time to evaluate your proposal.
• Be Prepared for Questions: Be prepared to answer any questions the company may have about your proposal and provide any additional information they may require.

Tips for Success:

• Tailor Your Proposal: Customize your proposal to each company's specific CSR focus and funding priorities, demonstrating a clear understanding of their goals.  
• Highlight Alignment: Emphasize how your project aligns with the company's CSR objectives and how it will contribute to their social impact goals.  
• Demonstrate Impact: Provide evidence of your NGO's past successes and the positive impact of your previous projects, showcasing your ability to deliver results.
• Build Relationships: Cultivate relationships with CSR representatives and maintain open communication throughout the funding process.  
• Be Transparent and Accountable: Ensure transparency in your financial management and demonstrate accountability in your project implementation.  

By following these steps and crafting a compelling proposal, NGOs can increase their chances of securing CSR funding and making a positive impact on the communities they serve.