NGO

Important Sources and Government Funding For NGOs: A Complete Outlook

calendar29 May, 2021
timeReading Time: 4 Minutes
Important Sources and Government Funding For NGOs

A non-governmental organization NGO is a non-profit entity that functions autonomously of government. As the name suggests, their intention is not to reap profit; instead, they focus on improving human lives through the various initiative. Some NGOs may have a confined audience reach, whereas some operate on a larger scale. After registering an NGO, every owner’s main concern revolve around the procurement of funds to fuel their operation. Apart from providing details on the same, in this write-up, we will discuss government funding for NGOs. 

KEY TAKEAWAYS

  • NGOs, or non-governmental organizations, primarily involved with global development, aid, & philanthropy. 
  • Though NGOs usually work for social welfare, they must run budgets of millions each year. 
  • As such, NGOs need funding from various sources, from private donation & membership dues to government contributions. 

Read our article:How to approach NGO Registration in India? Forms & Features

What type of funding source is accessible to NGOs? 

As non-profit firms, NGOs depend on various funding sources, operations and other overhead costs. The funds are important as they keep NGOs going and serve the short and long term goals. In short, fundraising efforts are imperative for NGO’s success and existence. 

Funding sources include the sale of goods and services, membership dues, philanthropic foundations, private sector for-profit companies, state & central authorities, grant from local and private donations. 

Individual private donors play a significant part in NGO funding. Some of these fundings come from wealthy individuals; NGOs, however, depend heavily on small donations instead of a small number of large donations. 

Despite their autonomous status, many NGOs depend heavily on government funding to operate. Some governmental NGO funding may be deemed as controversial because it may support certain political objectives rather than a country’s development goals. 

As non-profits, NGOs heavily depends on various funding sources, including: 

type of funding source is accessible to NGOs

Government Initiatives to promote government funding for NGOs

The speed up the funding process and improve the status of NGOs operating pan India; the government came up with an online portal, viz NGO DARPAN. 

The NGO-DARPAN is an intuitive platform that acts as an interface for NGOs and other departments. The NGO DARPAN is a government-driven initiative started by the National informatic centre & NITI Aayog. 

The platform enables the sharing of important details between NGOs and Volunteer firms, and government departments. Registering on the NGO DARPAN portal help, the NGOs receive important information pertaining to government grants and schemes. 

Let us dive into the process of registration on the NGO DARPAN portal. In the subsequent section, we will also shed some light on the NGO DARPAN portal. 

Benefits offered by the NGO DARPAN registration

  • Helps NGOs & other volunteer firms to interact & engage with government-based departments.
  • Obtain a unique ID that helps strengthen the goodwill & credibility of the NGO.
  • Department & Ministry portal will coordinate with this portal to share vital information.
  • Ensures uninterrupted data’s flow from the government to different NGOs around the nation. 
  • Updated details pertaining to new projects, schemes, and the progress of preceding initiatives.
  • Departments will use this portal to contemplate more about NGOs prior to appeal consideration. 
  • Helps to create a database of information pertaining to NGOs. 

Documents for the online registration of NGO DARPAN 

Any Volunteer Organisation or NGO registered as a society, trust, or non-profit private limited can apply for this registration. Following is the list of documents required for the NGO DARPAN registration online.

  • Copy of the Certificate of registration in PDF or JPG format. 
  • Pan Card pertaining to NGO
  • PAN &Aadhaar Card of 3 Members exist in the executive committee

The online information that you must enter include;

  1. PAN Number 
  2. Name of NGO/VO
  3. NGO Address
  4. Registration authority & Registration Number 
  5. Registration Date
  6. Details of three members who exist in the executive committee
  7. Details funding from the government & primary working area

Procedure of registration on the NGO DARPAN portal

  • Since December 2019, the government has made it compulsory for NGOs to complete the online registration of NGO DARPAN. These NGOs will need the NGO certificate to become eligible for FCRA registration & to apply for other government permits. Here is a quick glance at the web-based registration process on the NGO DARAPN portal. 
  • Head over to the NGO DARPAN’s official website.  
  • Tap the Sign Up button & create the login credential such as user ID & password for yourself.
  • Next, choose registration & furnish the required details about your NGO.
  • You will have to furnish contact details during this step, along with information pertaining to the PAN card.
  • Use the OTP sent by the portal on your contact number for creating the new password. 
  • Once you log onto the portal, furnish the details pertaining to registration. 
  • Provide additional information if you seek multiple registrations. 
  • Select the apt sector of business & complete the achievements section as well.
  • Lastly, provide your legit address and then tap on the Submit button. 

Conclusion 

In 2020, the centre tightened rules for firms seeking overseas funding. The rules inculcated by the government states that any firm seeking registration under Foreign Contribution (Regulation) Act must have a service life of a minimum of three years and spent “a mini.amount of INR15 lakh on its core activities during the last three financial years”.

According to the government[1], if the foreign contribution’s value exceeds Rs 1 crore, it may be given in parts provide that the second & rest of the instalment shall be released after the submission of utilization’s proof of 75% of the overseas contribution received in the preceding instalment & after field scrutiny of the overseas contribution’s utilization. Therefore, it’s important to keep the above facts in mind while procuring from other nations. 

Read our article:All you need to Know before Starting an NGO in India

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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