Everything you Need to Know about Eligibility Conditions to Acquire Funding for NGO

calendar18 Jan, 2021
timeReading Time: 4 Minutes
Eligibility Conditions to Acquire Funding for NGO

Non-Governmental Organizations aim to create awareness among the people in regard to the various social factors such as rapes, acid-attacks, animal cruelty, education, environment, etc. These organizations function on a non-monetary basis hence, they are also known as Non-Profit Organizations. In this article, we are going to learn about the conditions that are required to be fulfilled to acquire Funding for NGO.

The World Bank states that these organizations pursue and conduct activities that provide aid to relieve people’s suffering, promote the interests of the poor, protect the environment, provide basic social services or undertake community development.

Numerous registered or unregistered NGOs (Non-Government Organizations) have been formed over the years and they indeed play a crucial role in the upliftment of the society. However, it is always recommended to get an NGO registered to utilize the benefits provided by the government and to attain legal status. The registration of an NGO is also the foremost condition that entitles it to raise and receive funds for its smooth functioning.

Read our article:Guide on NGO Registration: Types and Benefits

Criteria’s Underlining the Funding for NGO

In general, for a non-profit organization, there are certain criteria which are required to be fulfilled in order to raise or receive funds from a national or an international source or both.

Given below are the essential conditions to acquire funding for NGO-

essential conditions to acquire funding for NGO

NGO should be registered

For an NGO to raise or receive funds, it must have a legal status meaning that it must be registered as a trust, company or a society.

Proper Grounds of Working

The NGO should have a constitution to abide by. There should be certain rules and regulations which must be followed for the smooth and fair functioning of the organization. The objectives of an NGO should be properly specified in the Memorandum of Association and Articles of association.

Managing Body to Receive Funding for NGO

An organization should have a managing body that governs it. The appointed body should have the authority to conduct the activities and affairs of the organization.

Non-Profit Motive

An organization registering itself as an NGO should run on a non-profit motive. The organization must conduct activities that support the cause for which it was formed, and even if the organization is involved in some kind of business, then also, the profit earned from the business must be invested in the working of NGO and should not be distributed as dividends among the members of the organization.

Involvement of Volunteers

There should be active volunteers in an NGO who are genuinely interested in the welfare programs of the organization and should be able to attract more and more volunteers.

No Discrimination by the Organization

A non-profit organization should render services without any discrimination based on caste, creed or religion. Their only motive should be to serve the humanity. It should not promote the interest of any political party and should aim at treating the target group in a judicious manner without exploiting the resources of the organization.

Credible Past Records

In general, the organization’s that have credible records received funds easily. Admirable services and non-discriminatory nature are a contributing factor when it comes to donating funds to an organization.

Promotional Activities

It is mandatory for the organization to participate in promotional activities of self-help groups.

Secular and Non-Political Approach

A non-profit organization should have a secular approach and should not be associated with any political party[1]. Non-profit organizations should not promote any political party and must follow a fair approach while working for the betterment of the society.


A non-profit organization should work independently. All the NGOs are independent from government control that works for non-for-profit purpose.

Non-Governmental Body

The staff of the organization must belong to the private sector. The sources of funds must not come from governmental body. The deployed staff must have required skills, and they should have knowledge of the local language of the place where the organization is located.

Effective Monitoring and Book-Keeping

A non-profit organization should keep an eye on the activities of the organization and the financial records of the organization must also be maintained properly.

No Law Suits

There should be no court cases running on the organization, if there are any, then it may arise doubt on the credibility of the organization.

Administrative Policies

The organizations must have clear administrative policies that includes the remuneration, recruitment, transfer, salary etc. of the staff.

Mind Mapping before Formation

 It should have a clear vision, mission and goals to achieve. There should be different strategies and a proper mechanism should be followed to thrive towards the objective of the organization.

Physical Presence

An organization must be physically present and should have an office to attend the victims or help seekers.


In today’s world, society tends to change significantly and people are aware of the requirement of social interaction. Accomplishment of social needs is an utmost priority in the present scenario. In order to accomplish those needs and keeping up with the change, society needs devoted, resolute and responsible non-profit organizations as well as leaders.

Hence, there is a need for Non-Governmental organizations to be credible, effective, productive and righteous. For effective running of an organization, funding for NGO is an essential element. In order to receive funds, the above stated conditions must be fulfilled by an organization. To know more about NGO Registration, contact Corpbiz.

Read our article:NGO Registration – Step by Step Procedure

Request a Call Back

Are you human? : 2 + 8 =

Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality