How to start an NGO?

Name: Mng Dir NGO Com

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Subject: NGOs Explained  How to start an NGO

Message:  What is an NGO ?

Definition of an NGO

A non-governmental organization (NGO) is any non-profit, voluntary citizens' group which is organized on a local, national or international level.

Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political particpation through provision of information.

Some are organized around specific issues, such as human rights, environment or health.

While most of the NGOs work at the grassroot level with the communities, some provide analysis and expertise, serve as early warning mechanisms and help monitor and implement international agreements

The World Bank, defines NGOs as "private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development". A World Bank Key Document, Working With NGOs, adds, "In wider usage, the term NGO can be applied to any non-profit organization which is independent from government. NGOs are typically value-based organizations which depend, in whole or in part, on charitable donations and voluntary service. Although the NGO sector has become increasingly professionalized over the last two decades, principles of altruism and voluntarism remain key defining characteristics."

How are NGOs registered ?

Society

Trust

Section 25 Company

NGOs are not for profits. So can they make profits ?

Yes. It would be called as surplus and not profit.

Like Companies, which can distribute profits in the form of dividends, NGOs can not distribute surplus.

NGOs are referred in many ways.

NPOs or Not for profit

VOs or Voluntary Organisations

CSOs or Civil Society Organisations

CBOs or Community Based Organisations

Charitable Organisations

Third Sector Organisations

(The other two sectors are state and the market)

Note : Social Sector professionals define all of them differently. The above similarities are only for lay persons

Typical Forms of NGOs

Advocacy

These NGOs basically work on advocacy or campaigning on issues or causes. As a focus, they do not implement programmes.

e.g. PETA works on advocating the cause of Ethical Treatment of Animals. It is not an animal shelter, which many expect.

Consultancy / Research Organisations

These NGOs work on Social and Developmental Research & Consultancy

Training / Capacity Building Organisations

In the NGO Sector, training is usually called as Capacity Building. Some NGOs only work on Capacity Building of the other NGOs

Networking Organisations

These NGOs provide vital network opportunities for NGOs in a specific field

e.g.Association of Voluntary Agencies for Rural Development (AVARD) works on networking of NGOs working in the field of Rural Development

Mother NGOs

These NGOs are recipients as well as givers

e.g. large NGOs like CRY, Concern India receive funds as well as disburse funds. They have a work focus, but instead of implementing projects, they identify projects and monitor, evaluate and build capacities of participating NGOs

Grassroot Organisations

These NGOs work directly with the community

e.g. Apnalaya works with the underprivileged in the slums of Govandi directly. Traditionally one can look at all Mahila Mandals fall in this category.

City Based Organisations

These NGOs restrict their focus to cities

e.g. AGNI focusses its work in Mumbai City

National Organisations

These NGOs have national presence. In India, very few NGOs are national level.

e.g. CRY, Pratham, Concern India

International Organisations

These are part of an International NGOs

e.g. CARE India is an integral part of CARE's global operations. Like mother NGOs, these NGOs receive and disburse grants

Self Help Groups

They are not typically terms as NGOs. These are formed by beneficiery communities, typically women who come together in a grouup of 10 plus. India is witnessing a great movement of SHGs presently and these women are transforming the Rural Andhra Pradesh and Rual Tamil Nadu

Religious NGOs

Large percentage of NGO Funding goes to religious based Organisations.

e.g. Siddhivinayak Trust in Mumbai

How many NGOs are working in India

IndianNGOs.com estimates that there would be around 1.5 million NGOs working in India.

The estimates of different sources vary but largely people agree this figure to be between 1 million to 2 million

NGOs registered In Mumbai ( around 55 000 )

NGOs registered In Thane ( around 11 000 )

If you cant believe the 55 000 number of NGOs, remember that temples, churches, mosques, gurudwara's...are all registered as NGOs. All your neighbourhood sports associations are NGOs and all Ganeshotsav Mandals would also be NGOs. Some of the cities top hospitals are NGOs, so are educational institutions.

Some of the states with high number of NGOs

Gujarat

Maharashtra

Tamil Nadu

West Bengal

What is the size of NGOs

PRIA had done an extensive research on the NPO Sector and its publication indicates the following

Paid Staff % of NGOs

One or less paid staff 73.4%

Between 2 to 5 paid staff 13.3%

Between 6 to 10 paid staff 04.8%

Above 10 paid staff 08.5%

While referring these statistics please quote the source as PRIA

Is it possible to work with one or less staff ?

Yes. Many NGOs are entirely managed with the help of volunteers

How many people work in the NPO Sector ?

PRIA Research indicates the following

All India / State Number Volunteers Paid

All India  19.4 million  85% 15%

West Bengal  1.52 million 90% 10%

Tamil Nadu  1.49 million  72% 28%

Delhi 1.03 million  80% 20%

Maharashtra 0.77 million  89% 11%

Meghalaya 0.12 million  83% 17%

Number of full time equivalent persons working in NPOs in India

All India / State Number Volunteers Paid

All India  60.35 lakhs 56% 44%

West Bengal  3.51 lakhs 62% 38%

Tamil Nadu  6.41 lakhs  42.5% 57.5%

Delhi 3.45 lakhs  50% 50%

Maharashtra 2.43 lakhs  71.3% 28.7%

Meghalaya 0.43 lakhs  55% 45%

Receipt of Foreign Contribution during 2000-2001

 22,924 associations stood registered under FCRA as on 31st March 2001.

FCRA means Foreign Contribution Regulation Act

Each NGO receiving foreign funds must have FCRA Registration

In order to ensure that foreign funds do not go to terrorist supported organisations or any such elements, the FCRA is given by the Home Ministry and not the Finance Ministry

Attention participants : If any of your customer from any foreign country wants to donate funds to an NGO in India, the recipient NGO must have FCRA

 638 associations were granted prior permission to receive foreign contribution during 2000-2001.

14,598 associations filed returns for 2000-2001.

 The receipt of foreign contribution during 2000-2001 amounted  to Rs 4535.23 crores.

This is 15.56% more than the amount received in the previous year (Rs 3924.63 crores).

Top three recipient States and UTs Amount  Top three donor countries

Delhi  Rs 763.05 crores  USA Rs 1492.62 crores

Tamil Nadu Rs 649.45 crores  UK Rs 677.59 crores

Andhra Pradesh Rs 589.52 crores  Germany Rs 664.51 crores.

Leading donor agencies Amount  Largest recipient of foreign contribution

World Vision International, USA  Rs 80.43 crores  Sri Sathya Sai Central Trust,  Andhra Pradesh Rs 88.18 crores

Foster Parents Plan International, USA Rs. 76.37 crores  World Vision of India, Tamil Nadu  Rs 85.42 crores

Watch Tower Bible and Tract Society, USA  Rs. 68.11 crores  Watch Tower Bible and Tract Society India, Maharashtra Rs. 74.88 crores

Causes with largest amount received

Rural Development : Rs 547.74 crores

Health Care & Family Welfare : Rs 432.98 crores

Relief for natural calamities : Rs 339.77 crores

Some Basic Information

Receipt of Foreign Contribution.

The provisions of the Foreign Contribution (Regulation) Act, 1976 regulate the receipt of foreign contribution in the country. The Foreign Contribution (Regulation) Rules, 1976 contain the various forms prescribed for this purpose.

What is foreign contribution?

Foreign contribution means the donation, delivery or transfer, made by any foreign source of any,

a) article, not given to a person as a gift, for personal use, if the market value, in India, of such article exceeds one thousand rupees;

b) currency, whether Indian or foreign;

c) foreign security as defined in clause 2(I) of the Foreign Exchange Regulation Act, 1973.

NOTE: Contributions made by a citizen of India living in another country, from his personal savings, through the normal banking channels, is not treated as foreign contribution. It is advisable to obtain the passport details of the concerned citizen of India before accepting such contributions.

What is a foreign source?

Foreign source means the government of any foreign country or territory or its agency; international agency; a foreign company; citizen of a foreign country. For more details see section 2(1)(e) of the Foreign Contribution (Regulation) Act, 1976.

Who cannot receive foreign contribution?

Foreign contribution cannot be accepted by a candidate for election; correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; judge, government servant or employee of any corporation; member of any legislature; political party or office bearer thereof.

Who can receive foreign contribution?

An association having a definite cultural, economic, educational, religious or social programme, after it obtains the prior permission of the Central Government or gets itself registered with the Central Government, can receive foreign contribution.

Are all these NGOs good and credible ?

NGOs are formed by people. So like every industry, there are good and bad intentions. The NGO Sector is suffering more from the credibility image because they are dependent on donations from others rather than their self generated income. Also, people feel that there could be corruption at corporate or government level but at least the non profit social sector should be free of corruption.

What is the typical size of an NGO ?

The size of the NGO depends on its activities and budgets

e.g. CRY is more of a funding and monitoring organisation, working with 171 partner organisations across the country. CRY employs around 150 people. For implementing organisations of the same budget, the number of employees will be higher.

Typically most of the NGOs in the country have less than 10 people.

Why the role of NGOs is critical to build empowered sociey ?

Individual, institutional and even government funding to communities is channeled through NGOs. That is why the role of NGOs is critical to the development of the nation.

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Next to Sahyog Mandir, Ghantali, Naupada, Thane 400 602
Phone : 98200 73599      
Info@IndianNGOs.com