Who can form an ngo

An individual who truly wishes to serve the community and promote charitable, educational, religious, cultural, environmental, healthcare or other legal purposes for the public good can form a non governmental organization. Any individual who is legally competent to enter into a contract and legally required can take part in setting up an ngo in India and proceed for national level ngo registration. The age of 18 is generally recommended as the minimum age for a founder or trustee because a major can legally sign documents and assume legal duties. Under law, there is no minimum level of education required to establish an ngo. A person can be very well educated or have minimal formal education and still set up an ngo as long as they understand what the ngo is and meet the legal requirements. Any group of individuals representing diverse professions and backgrounds like teacher, doctor, lawyer, social worker, businessmen, retired government officers, student above the age of majority, farmers, professionals, homemakers, community leaders can form a public welfare oriented ngo. The number of founders will vary according to the legal structure chosen. For a charitable trust, the minimum requirement is at least one settlor and trustees and for a society, it’s the minimum membership as provided by the relevant act. A section 8 company is set up in compliance with the companies act and needs the specified variety of directors and members. Some of the important steps that should be taken before launching an ngo are to establish a clear objective for the charitable purpose, draw up the governing documents, choose the registered office address, elect office bearers and decide on the legal structure of the ngo. The individuals involved should have a good reputation and they are dedicated to transparency, accountability and good governance. Having background in social work, knowledge of community development, financial management, project implementation and legal compliance can contribute to a successful growth of the organization, though there is no legal requirement to have any prior experience in social work. An ngo can operate in one or more of the following sectors like education, healthcare, women empowerment, child welfare, environmental protection, rural development, poverty alleviation, skill development, welfare of senior citizens, disability, animal welfare, disaster relief and many more charitable organizations. Once registered, the organization can apply for 12a registration to avail tax exemption on income and 80g registration to avail income tax deductions to eligible donors under the income tax act. In the event that the ngo wants to accept foreign funds, it will need to register for fcra or secure a prior permission under the relevant laws. All founders, trustees, directors, members of the governing body need to be aware that an ngo is created for public benefit and not for the monetary gain of the individuals. The organization should keep proper books of account, meet regularly, fulfil statutory requirements and ensure that all funds are utilized for approved charitable purposes. Effective leadership, accountability in decision making and financial management contribute to the trust of the public and better opportunities for receiving funds from donations, grants and corporate social responsibility. A person who is genuinely interested in social service, lawful objectives and willing to be committed to the cause of society for a long period of time can do a great deal in establishing and running a successful ngo which can bring about a positive change in the society for a long time.