This document discusses non-governmental organizations (NGOs) and section 80G of the Indian Income Tax Act, which allows for tax exemptions on donations made to certain NGOs. It provides information on the requirements for NGOs to register and receive an 80G exemption certificate, including maintaining proper accounts, having charitable objectives, and not engaging in religious or caste-based activities. The application process and required documents are also outlined.

1. By
Swetha
Hamsini
Muthumanikandan K
MA.HRM-DG Vishnav College

2.  A non-governmental organization (NGO) is
any non-profit, voluntary citizens' group
which is organized on a local, national or
international level.
 A non-governmental organization (NGO) is a
citizen-based association that operates
independently of government, usually to
deliver resources or serve some social or
political purpose.

3.  Innovative approaches and, if necessary, to
take risks.
 Flexible in adapting to local situations and
responding to local needs
 Good rapport with people and can render
micro-assistance to very poor people
 Ability to communicate at all levels, from
the neighborhood to the top levels of
government.
 Recruit both experts and highly motivated
staff

4.  The degree of participation in program
me/project design.
 Restricted/constrained ways of approach to
a problem or area.
 Dependence on outside financial resources
 Reduces cooperation between agencies,
seen as threatening or competitive.

5.  Charitable Orientation-Needs of the poor -distribution
of food, clothing or medicine; provision of housing, transport,
schools etc
 Service Orientation- Provision of health, family
planning or education services in which the programs are
designed by the NGO
 Service Orientation- Self-help projects where local
people are involved particularly in the implementation of a
project by contributing cash, tools, land, materials, labour etc.
 Empowering Orientation- The aim is to help poor
people develop a clearer understanding of the social, political
and economic factors affecting their lives, and to strengthen
their awareness of their own potential power to control their
lives.

6.  Community-based Organizations- These can
include sports clubs, women's organizations, and neighborhood
organizations, religious or educational organizations.
 Citywide Organizations- Its Include organizations such as
the Rotary or lion's Club, chambers of commerce and industry, coalitions
of business, ethnic or educational groups and associations of community
organizations.
 National NGOs- Its Include organizations such as the Red Cross,
YMCAs/YWCAs, professional organizations etc. Some of these have state
and city branches and assist local NGOs.
 International NGOs- Redda Barna and Save the Children
organizations, OXFAM, CARE, Ford and Rockefeller Foundations to
religiously motivated groups.

8.  Memorandum and Rules & Regulations in Duplicate duly signed by
Minimum Three persons (Each page on bottom).
 Ownership Proof of Registered Office. (Electricity Bill/Sale Deed/
GPA/Water Bill etc.)
 Residential/Office address Proof of the all members of the Society. Such
as Voter ID/ Telephone Bill/ Electricity Bill/Pass Port/Driving License etc.
 NOC from Owner of premises on Rs.10/- Stamp Paper.
 Affidavit from President on Rs.10/- Stamp Paper.
 List of Desirous person should be signed by all members of the society.
 Desirous persons or the persons subscribing the name to the Memorandum
should not be (in any case) less than seven. If it is proposed to give All
India character to the society there must be minimum of eight different
persons from different States of Indian Union to the Memorandum.

9. State Level Society: Requirements
 A suitable name for organization.
 Charitable purposes.
 Seven initial members to form the organization.
 Two Members (President - Treasurer or Secretary -
Treasurer).
All India Level Society: Additional Requirements
 At least nine initial members to form the organization.
 Two Members (President - Treasurer or Secretary -
Treasurer) form one state.
 Other Seven Members from other seven different states.

10.  In general, trusts may register for one or more of the
following purposes:
Relief of Poverty or Distress
Education
Medical Relief
Provision for facilities for recreation or other leisure -time
occupation (including assistance for such provision), if the
facilities are provided in the interest of social welfare
and public benefit

11.  Societies are governed by the Societies
Registration Act 1860, which is an all-India
Act. Many states, however, have variants on the
Act.
 According to section 20 of the Act, the types of
societies that may be registered under the Act
include, but are not limited to, the following:
Charitable societies;
Societies established for the promotion of science,
literature, or the fine arts,
For education; and
Public art museums and galleries, and certain other
types of museums.

12.  The Indian Companies Act, 1956, which principally governs
for-profit entities, permits certain companies to obtain not-for-
profit status as "section 25 companies." A section 25
company may be formed for "promoting commerce, art,
science, religion, charity or any other useful object.“
 A section 25 company must apply its profits, if any, or other
income to the promotion of its objects, and may not pay a
dividend to its members. At least three individuals are
required to form a section 25 company.
 The application must include copies of the memorandum and
articles of association of the proposed company, as well as a
number of other documents, including a statement of assets
and a brief description of the work proposed to be done upon
registration.

13.  To promote the concept of charity towards the poor and
the needy, the Indian government has been regularly
encouraging people to donate and this donation can also
be claimed as a deduction under Section 80G.
 To encourage people to donate, the government also
allows for income tax deductions under Section 80G for the
amount which has been donated. The amount which has
been donated by a person is allowed to be claimed as a
deduction under Section 80G, at the time of filling his
income tax return

14.  How to Apply for 80G Exemption Certificate in India?
 Income Tax department issues these certificates for tax exemption on donated money.
 What is the exemption under 80G?
 Exemption under section 80G gives rebate to a donor on the amount he
donates to an organization that has 80g certificate. If the public charitable
organization (NGO) has 80G certificate then the donors of that organization
would not need to pay tax on the 50% of the donated amount.
 How to apply for 80G exemption?
 Exemption under section 80G is applied on a form called 10G. This form can be
downloaded from Income Tax department’s website.
 Validity of 80G Exemptions?
 Income tax department issues 80G certificate only for a specific period
(usually 1-3 years). After expiry, 80G exemption must be reapplied for and
renewed.
(Update (June 2014): Now Income Tax department is issuing 80G certificate for lifetime. You would no
longer need to get it renewed.)

15.  Condition’s for getting 80G exemptions?
 NGO should not have any income which is not eligible for exemption. For
example, business income. lf, the NGO has business income then it should
maintain separate books of accounts and should not divert donations received for
the purpose of such business.
 Bylaws or objectives of the NGOs should not contain any provision for spending
the income or assets of the NGO for purposes other than the charitable
objectives mentioned in the Trust Deep or Rules of Association.
 NGO should not be working for the benefit of particular religious community or
caste.
 NGO maintains regular accounts of its receipts & expenditures.
 NGO is properly registered under the Societies Registration Act 1860 or under any
law corresponding to that act or is registered under section 25 of the Companies
Act 1956.
 Trustees or governing body members are not drawing any undue benefits from
NGO funds.

16.  Documents required for registration of 80G certificate?
 Dully filled in Form – 10G for registration u/s 80G registration
 Registration Certificate and MOA /Trust Deed (two copies – self attested by NGO head)
 NOC from landlord (where registered office is situated)
 Copy of PAN card of NGO
 Electricity Bill / House tax Receipt / Water Bill (photocopy)
 Evidence of welfare activities carried out & Progress Report since inception or last 3 years
 Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years
 List of donors along with their address and PAN
 List of governing body I board of trustees members with their contact details
 Original RC and MOA /Trust Deed for verification
 Authority letter in favor of NGO Factory
 Any other document I affidavit / undertaking I information asked by the Income Tax department

17.  When can you apply for 80G exemption?
 Exemption certificate u/s 80G can be applied for
just after the registration of NGO is completed.
 Where is 80G to be applied?
 80G can be applied for at the office of
Commissioner of Income-tax (Exemption) having
jurisdiction over the institution.