NGO can be described as an autonomous organization comprising a group of persons sharing common interests voluntarily joining their hands to serve society, nation and world by playing an important role in improving the conditions of the vulnerable section of society in form of registered trust, charitable organization or society. This group works for the welfare of society without any objective of earning profits. The funds in these organizations are generated from their own sources or from government sources in form of government aids.These organizations may appoint different persons and make payment for the services given by them, but these organizations do not distribute its profit among its members. The main objective of these objectives is UPLIFT OF SOCIETY by improving the condition of the deprived section. These organization make people aware about the government policies and join hands with government organizations in spreading awareness about government implement programmes to citizens.
Method of Registration:In India following method of registering NGOs prevails.
A group of person can get them registered as a NGO in form of Trust, Society, Non-Profit Company under section – 25 companies. Non-profit organisations in India (a) exist independently of the state; (b) are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity; (c) produce benefits for others, generally outside the membership of the organisation; and (d), are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.
Separate rules and regulations are prescribed for all three categories of registering NGOs as trust, society or non-profit company.
NGO as Trust: All the states in India have their own Trust Acts prevailing in their respective states. In absence of Trusts Act general principles of the Indian Trusts Act 1882 are applicable. A trust in general can be defined as group of persons who set their own common objectives and principles and have certain number of members who are known as trustees in the board.
NGO as Society: A NGO can be registered as society under the Societies Registration Act, 1860. The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.
NGO as non-profit company: According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established ‘for promoting commerce, art, science, religion, charity or any other useful object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
Legislation : Section-25 companies are registered under section-25 of the Indian Companies Act. 1956.
NGO in Chennai:Explore complete details about NGOs of Chennai
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