What are the Benefits of NGO Registration in India?

NGO registration builds your value and enhances credibility in the eyes of stakeholders. The significant benefits of NGO registration in India are as follows:

1. Legal Recognition – Validates its existence and boosts its identity as a separate entity from that of its members, strengthening legitimacy for stakeholders.
2. Financial Assistance & Fundraising – Donations from individual donors and other stakeholders such as corporates and governments made easy, lending legitimacy to the donations received.
3. Asset Procurement – Facilitates real estate buying, selling and retaining fixed assets.
4. Ownership Transfer – NGOs registered under the Companies Act of 2013 are legally permitted to transfer ownership or rights to interest accumulated under the Income Tax Act of 1961.
5. Safeguarding Legal Rights – Adds value to the NGO as a business/corporate entity, boosting operational transparency and giving it a legal right to safeguard the entity’s and trustees’ interests.
6. Operational Continuation – An NGO functions indefinitely, even in case of its founders’ or trustees’ death or resignation. In India, it shuts down only if there is a court decree or it has declared closure.
7. Name Protection – Using a name or identity similar to a registered NGO is forbidden. They have the right to safeguard their legal name and protect their identity and brand.
8. Protection Against Personal Liability –Acquiring assets and interests under a registered NGO effectively shields a person from personal events like foreclosure, divorce or bankruptcy.
9. Bank Account for Stakeholder Confidence- Opening a bank account mandates that an NGO register itself. Stakeholders and donors are more confident and comfortable donating to a corporate account than to a personal account.
10. Promotes Accountability & Transparency – Considered to have responsible leadership, promote accountability & transparency and share stakeholder confidence. It paves the way for corporate collaborations and donations from governments, individuals, political parties, charities, financial institutions, etc.
11. Organized Financial Strategy – NGOs offer a tax-free framework as they’re exempted from taxation. It is, therefore, easy to create a financial strategy facilitating tax-free operations.
12. No Minimum Share Capital Requirement –Registered NGOs are exempt from the hassle of minimum share capital requirements to meet their operational needs. Such NGOs can freely fund their operations through donations received.
13. Access to Credit – Access to securing loans from financial institutions or lenders to fund daily operational needs, manage mortgages, and buy and sell fixed assets and/or lands. Unregistered NGOs find it hard to secure loans from banking institutions.

How to Raise Funds for NGO after NGO Registration?

After successful NGO registration, NGOs can raise funds through different means, such as:

1. Individual Donors – NGOs can appeal to donors through personal contacts for small individual contributions.
2. Crowdfunding – NGOs can collect small contributions from a large number of individuals through crowdfunding platforms/portals available online.
3. Grants – NGOs can apply for grants from government and private organisations, foundations and international organisations that are active in the field of social service.
4. Corporate Collabs & Partnerships – NGOs can collaborate and partner with professional & corporate organisations that are aligned with their vision and goals.
5. Fundraisers –   NGOs can organise fundraising events like charity walks, concerts, auctions, or online campaigns to entice donors and generate funds.
6. Social Media Platforms – NGOs can leverage social media platforms like Facebook, Instagram, Twitter, and LinkedIn to connect with a broad audience and raise awareness about their cause.