Friday, 20 August 2021

How to join the NGO make a career in it or get the fund?

How to join the NGO make a career in it or get the fund?

Ashutosh kumar

    How to join the NGO make a career in it or get the fund?


    How to join the NGO make a career in it or get the fund? The Full form of NGO is a nongovernmental organization. Many people have the zeal to work for society. They would like to make an impact on society. Whenever they make up the mind to work for society then the first question comes to their mind like how? Where? When? So in this article, I will explain how a person can join the NGO, make a career in it or if starts own NGO then how can he/she gets the fund.  From where we can start? So at first people need to find a purpose or the area in which they would like to do the social service and would like to make a career. There are many NGOs that are working for many purposes. There are new NGOs also coming into force to service society for different purposes. So first you shortlist the area of interest and then search the NGOs which are working in this area. For example below are the purposes of NGOs. There are many other purposes for which NGOs are working.  Purpose of NGOs To help the people  Adopt Poor orphan child  Provide free books  To make a school/hospital  Provided free food, medicine home to the needy one.  Any kind of work related to social welfare can be termed as the work of NGO  How to join NGO There are two ways to join the NGO. The first one is to join as a member of the existing NGO and The second one is to start your own NGO.  If you would like to join NGO then obviously you would have the purpose of social service or you would have done the course of BSW/MSW. For internship or as a permanent employee you may join t the NGOs.  For this, you may search NGO and apply online to their website or you may personally visit and join. You have two options. You can join the NGO as a member or join there as an intern. On NGOs website, you will find the option like becoming member/Get involved/Internship. NGOs may ask for your credentials like KYC document, Qualifications, phone number email id. Once you are through in the interview then you may join there and pursue your passion.  How to start own NGO You may feel that instead of joining the NGO let us start our own NGO. It is not a bad idea. Here you can implement your idea, imagination, passion in your way. If you would like to do social service and don’t intend to take the grant from the government then there is no need for registration. If you intend to take the grant form govt then you should go for the registration.  You can get register your NGO under the society act 1860 or trust act 1882. For registration under the society act, you need a minimum of 7 members as a group for a particular purpose whereas for registration under the trust act you need a minimum of 2 trustees. In society, blood relation is not allowed. whereas in trust blood relation is allowed. you can make him a member. If you would like to register the society on a national level then 7 members should be from different states and one member from the place where you are registering the society where as in trust registration this limitation is not there.  You may find details and registration process about society :  What Is Trust? Types Of Trust, Its Work And Registration Process If you would like to register your NGO under trust act then you may visit :  What Is The Society Registration Process? How To Start The Society In 2021? How to get the fund for NGO There are many ways through which an NGO can collect the fund. I am explaining few examples below:    Membership: An NGO can collect membership fees from its members. through which they can generate a good amount of revenue. Membership fees can be many types. Life-time membership, yearly, permanent, Patron. You can classify the types of membership like this. Grant from the government: For getting the grant from the Government NGO will have to register on Niti aayog Portal NGO Darpan website . Please get your NGO impaneled and get the unique id from there. Please note as per the government circular this is mandatory for getting any kind of grant from The Government.  If you would like to apply for a government grant then first you will have to sign in on NGO Darpan website and then will have to go to apply for the grant link and you will have to proceed further. Here you will find the different link of different ministries and departments. Every department has its own criteria and requirements for giving the grant. You need to fulfill their requirement and then submit the proposal to them.           3. CSR Fund: CSR means corporate social responsibility fund this act is in force since April                       2014.In this act company that has an annual net worth of 500cr or annual income is of 1000 cr or            annually profit is 5cr then they have to spend on CSR. This spend should be the 2% of average               profit of last 3 years. An NGO can get this fund without registering for 12A and 80G. Education,            empowerment, health, skill development, training, , sports are the field where companies                       disbursing CSR funds. There are other fields as well where funds are being disbursed. I have just            shared few examples. For getting the fund under the CSR project title of the proposal should be               attractive. You should clearly define your goal, target and budget. Description of the problem and            its possible solution. How will be the fund used that needs to be described in detail.            4. Public fund: Once the public come to know your social work then they get impressed and then             they donate to your NGO. For getting the fund from the public you need to keep advertising                    your work on a different platform so that the general public should know what you are doing.                Also, share your ac detail on the website so that the interested public can donate.            5. Foreign agency fund: Once you get the FCRA certificate then you can get the fund from the                foreign agency as well. The Only catch is an NGO can get the FCRA certificate only after 3                    years of existence.            6. Fund from the sponsorship and sale of goods: You can get organized a program and can                    collect the fund through sponsorship and selling your goods which your NGO has made. This               way also you can generate a lot of funds.            7. Fund form loyalty program: You can mobilize the fund by running the loyalty program. This                    program can run on a periodical basis.


    Thursday, 19 August 2021

    What is  NGO Trust? Types of trust, its work and registration process

    What is NGO Trust? Types of trust, its work and registration process

    Ashutosh kumar


      What is  NGO Trust? Types of trust, its work and registration process



      What is Trust? Types of trust, its work and registration process. Purpose of trust, documents required, tax exemption and donation to the trust.          What is Trust? Types of trust, its work and registration process Trust which Hindi meaning is bharosa/vishwas. Trust is a very important part of our society. There are many kinds of activities going on through trust. Every state has its own trust act but wherever there is no specific act then Trust act 1882 comes into force. This had come into force on 1st March 1882. Till today it is in existence through article 372 of the Indian constitution. IT provision under sec 11,12, and 13 we have the provision of trust. So I would like to elaborate on different type of trust and its work and its registration process. Broadly there is two kinds of Trust.  Private Trust Public trust Private Trust Property/assets are given to the trust by an individual and it is managed by the trust and whatever income happens in the trust gets to pass on to the designated individual. In this trust, the personal beneficiary is limited to author discretion. In other words, we can say if the purpose is related to the creator then this trust will be called private trust. In this trust, people will be taxed as an individual tax rate provided none of the beneficiaries having taxable income. In this trust, the maximum marginal rate will be applied If any of the beneficiaries having taxable income.  Public Trust If the creator has given his property (Movable immovable) to the trustee for a particular purpose and if the purpose is related to general public then this trust will be called public trust.In this trust people will be taxed as an individual subject to trust has spent 85% of the income. Less than 85% of spend will attract tax as per the individual tax slab. Here it will be pertinent to mention that every trust is supposed to spend 85% of income in charitable activity for getting the benefit under the income tax act.in this act there is also a provision that if a trust has planned huge expenditure and this is not possible from one-year donation/income then the income tax act says that trust can accumulate the donation for up to 5 years. Within five years a particular trust will have to spend the amount for getting the IT rebate. In this scenario 85 % spend every year rule will not be applicable. If trust has done any violation then income tax will charge a maximum marginal rate that is 35.53 percent. Once you registered as a public charitable trust you will get the benefit of 80G. Public charitable trust rules and regulations are very liberal.  Broadly two kinds of public trust is there: Religious trust: A Religious trust caters to the need or purpose of a particular religion. Like the trust for a Mandir or Masjid Charitable trust: Charitable trust does charitable work for the general public. It doesn't differentiate the general public by cast and creed or religion.  Essentials of a valid trust: Author: A author/creator/donor/settler is a person who is creating a trust  Trustee: Person who has been appointed in the trust by the author. Beneficiary (related or unrelated): This defines the purpose of the trust. An individual or group of individuals for whom the trust has been formed. Property (movable or immovable): The property which has been donated to the trust for fulfilling the particular purpose. Trust deed: A registered document basis on which the whole trust will function. Purpose of which trust can be created. Trust can be created for lawful purposes. The Purpose will be deemed as lawful unless  For bidden by law/Prohibited by law Defeats the provision of law  Fraudulent or cheating in nature Against public policy /immoral /Against the society Injury to other or his property (infringement of rights of other) /violation of rights of others Registration of a trust: Choose the appropriate name of the trust and also make sure that the chosen name doesn’t violate any kind of law. Determine the Author/creator/settler /Donor. Minimum of two trustees we need for registering the trust. Trust deed that will contain the name of the trust, author/settler name. Trustee name, the objective of the trust (beneficiary detail), registered office address. The details of the general body.by- laws.Area of operation of a trust. Memorandum of association. This will contain the name, address, and occupation of trustees. This will also clearly define the meeting calling process/duration, membership, donation, General body, appointment/removal of the trustees. What are the Rights and duties of the trustees? Details of the property which is going to be donated to the trust We need at least two trustees for registering the trust. For trust registration, we can apply at the commissioner or registrar`s office.  Documents required for registering the trust. Trust deed on stamp paper( value of stamp varies from state to state) Self-attested KYC document of the author and two photographs of the author Self-attested KYC document of the author and two photographs of all the trustees Proof of the registered office address. This can be an electricity bill, water bill. In the case of a rented office, you need to submit the consent letter of a landowner with his identity proof. So till now we have come to know that type of trust how it works and what is the registration process of the trust. But there are other aspects of the trust as well.  Limitation under trust act: Suppose someone has created the trust for two purposes and at the time of the creation of the trust both purposes were lawful. but after some time one of the purposes becomes unlawful due to the policy changes of the government. Now the bigger question is Do we need to close that trust? As per the law if the second purpose is dependent on the first purpose and if the first purpose is unlawful now then we will have to close the trust. If we can separate unlawful purpose from the other then trust will continue as usual. One of the objects of a trust declared unlawful shall continue or be dissolved is dependent on the objects of the trust. If the lawful object can be separated from unlawful objects and can be carried in isolation then trust shall be valid for the lawful object otherwise shall stand void.  Tax exemption for a public charitable trust After registration, a trust can apply for income tax exemption. For availing of the tax exemption under income tax trust needs to obtain 12A and 80G certificates from the income tax.  Donation with specific direction Sec 11(1) (d) says that if a donor has given a trust donation with a specific direction then trust will have to spend that donation for that particular specific direction. For example, if donor A has donated with an instruction to construct a particular wall then trust will have to construct a wall from that donation. Also, this will not be the income of the trust because it has come with a specific direction.  Donation without specific direction In this category, you need to keep 15% and the rest you will have to spend. in the utilization of fund, you can clear your old liability with current year donation as well.  Cancelation of the registration of a trust Income tax also may cancel the registration of trust after giving the opportunity of being heard. They will ask for an explanation. Income tax department l fix the date and time and trust people need to go there and submit the explanation.  Interested person  We can call a person an interested person for that trust If he has donated more than 50 thousand rupees to that particular trust.