What is NGO & its types?

Non Governmental Organization (NGO) or Non Profit Organization (NPO) is a group, organization, non profit establishment or non profit entrepreneurship of individuals, activists, voluntary and social persons. NGO or NPO is a community, persons, volunteers, civilians and citizens who are working or associated for social welfare and social development. If a group of person or community want to work for social change and on certain issues it can work as NGO without getting registration.

NGO as a association includes groups and institutions with primary humanitarian and co-operative objectives rather than commercial objectives completely or widely independent from Government. NGOs are private agencies to support development at local, national and international level by organized indigenous groups. NGO as a citizen Groups raises awareness and influence policies and includes independent cooperatives, community associations societies, groups and various associations. NGO works for the betterment and upliftment of socio-economically and politically weaker section of community to bring them in the main stream of society and move the society towards more improved and developed way of living and existence. As a community group and organization NGO provides and fulfills certain services development oriented tasks and works with aims and objectives to bring about required positive changes in society, community, areas and situations. NGO helps and supports people for their legal rights and powers in society. NGO supports, maintains and governs the status of Government organizations, ministries, departments, agencies, authorities for the aim, task, rules and purpose those are formed and running for, this is done in legal and democratic way and with people participation pattern to fulfill common interest. NGO is known and works for people’s participation in various required issues and tasks to support and improve the circumstances, conditions and situation. NGO is managed by the resources, funds and other kind of desirable support of Government, funding agencies, support agencies, support communities, with support and help of business groups and people. NGO can get help to run in a variety of sources, including the fees of members, private donations, grants, sales of goods and services. NGO as a charitable and religious associations manages private funds for development, distribution of food, clothes, medicines, equipments facilities and tools to needy persons and communities. NGO as nonprofit making organization in nature does not work for trade or business purpose but profits by sales of goods and services may be used for the aims and objectives. NGO is non profit making organization, works for no profit and no gain so it is also known and identified as Non Profit Organization (NPO).

How can we define if an organization is NGO or not?

Simple. Just look at two points:

1. It’s serving for People at large without any discrimination/partiality.
2. Works on Not-for-profit basis.

Types of NGO Registration by Structure:

1. Trust: A public charitable trust which is usually floated when there is property involved, especially in terms of l& & building. Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or area, the total principles of the Indian Trusts Act 1882 are applied. The chief instrument of any public charitable trust is the trust deed, wherein the aims & objects & mode of management (of the trust) should be enshrined. In every trust deed, the minimum & maximum number of trustees has to be specified.
2. Society: According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act charitable societies, military orphan funds or societies established in India and societies which are established for the promotion of art, science or literature for education, the circulation of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums & galleries of paintings & other works of art, collection of natural history, mechanical & philosophical inventions, instruments or designs. Societies are incorporated underneath the Societies Registration Act, 1860, which is a centralized act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act but also, additionally, under the Bombay Public Trusts Act. The chief instrument of any society is the MOA & rules & regulations (no stamp paper required), wherein the aims & objects & mode of management (of the society) should be enshrined.
3. Section 8 Company: According to Section-8 of Indian Companies Act, 2013 (Old section 25(1) (a) & (b) of the Indian Companies Act, 1956, a section-25) a section 8 company can be established for encouraging commerce, art, science, religion, charity or any other beneficial object, provided the profits, if any, or other income is applied for encouraging the objects of the companies & no dividend is paid to its members. For a section 8 company, the chief tool is a Memorandum & Articles of association (no stamp paper required).

The model of the NGOs & NPOs in India differs by its nature & bye-laws which characterizes the objects of the association. Bye-law or MOA shall be formed throughout the formation of the above structural types of NGOs. The organizational types of NGOs differ by the body of the association like a minimum number of members, a maximum number of members, filing of accounts, operation of organization, area of operation, type of an organization like revocable or non-revocable & numerous other structural elements. Non-Governmental Organizations (NGOs) are mainly for the betterment of the people and society, it’s their duty also. There are diverse types of NGO Registration which have a precise part of emphasis & it works according to their interest area. But the other fact also that numerous NGOs fails in playing their roles & it collapse and there may also be several reasons behind it. If entirely the NGOs actually realize its responsibilities & play their role perfectly then it is sure that the conditions of the individual as well as the society will modify & it also benefits in nation-building.