Non-Governmental Organization (NGO) is an entity that is working with the objective of uplifting the society, charitable and other social purposes and is also known as the not-for-profit making organization. NGO facilitates its mission towards the promotion of social welfare, arts, charity, science, research, sports, education, religion, and more.
The expression Non Government Organization or NGO is used as an umbrella that covers all the legal institution that looks for charitable and humanitarian funds for the purpose of betterment of the society without intention to derive any profit from it.
NGOs play a significant part in developing the society, promoting citizen participation and improving the communities. In this article we shall discuss about the whether the NGO registration will make it eligible for government funding or not.
What is NGO Registration?
The incorporation of the Non Governmental Organizations is done to support the underprivileged and marginalized sections of the society. As the name Non-Government Organization suggests it is a nonprofit organization and so it is operated by voluntary initiatives or citizens without any intervention from the central or the state governments.
In India, the registration process of NGO is available under different Acts and various laws in different states but mainly under:
- Trust registration, under The Indian trusts Act, 1882
- Society registration , under Societies Registration Act, 1860
- Section 8 Company registration, under Companies Act, 2013.
All the three NGO models are regulated by three separate acts and all of them have their distinct features. Hence, it is important to choose a working model on the basis of the personal preference and requirement.
What are the Eligibilities to Start an NGO?
- If NGO is incorporated as a private limited company then Minimum 2 directors are required,
- In case of incorporation of it as a public limited company then minimum of at least 3 directors is required,
- The maximum number of the members shall be 200 in the case of a private limited company
- In case of public limited company there shall be no member limit.
Read our article:How to approach NGO Registration in India? Forms & Features
Brief on Government Funding for NGO
Any financial fund granted to the NGO by the Government of India is under the category of Government funding. If any NGO has to obtain Government funding, then it needs to submit about their project in the ministry of Government and let the ministry know about the work which the NGO needs money. If the project is approved then the NGO shall receive the fund. If it is disapproved by the Government then the NGO won’t be able to get the funds.
- The Government Ministries, Government Departments and Public sectors have certain rules, parameters, terms and regulations on the basis of certain criteria on which the NGOs are given the funds and schemes from the Government.
- The major requirement is that the NGO must be registered and empanelled in the NITI Aayog.
- The NGO must have the unique ID after getting empanelled in order to receive the government funding.
- In general practice, after 3 years of the successful NGO registration, the NGO will be eligible for government funding. Nonetheless, in certain exceptional cases if the NGO gets permission for their project plans then the government funding can be acquired just after one year of the NGO registration.
- For getting Government funding, the applicant should login NGO Darpan government website.
- The applicant shall click on “Apply for Grant” link in the darpan site and further proceed by clicking on the available links.
- The applicant is required to submit his complete project proposal in accordance with the guidelines of that specific page of the concerned Department.
Few Major Ministries who Provides Funding Schemes for NGOs
The following are the list of government ministries which provides government funding to the NGOs working on all the given sectors:-
Ministry of Culture
The NGOs working for development and promotion of culture will be covered under this section and the Ministry of Culture will provide funds for culture schemes.
Ministry of Health and Family Welfare
The NGO working for the promotion of health and family welfare will receive funds from the Ministry of Health and Family Welfare.
Ministry of Human Resource Development
NGOs working on the projects for growth of Human Resource Development section will receive government funds from the Ministry of Human Resource Development.
Ministry of Social Justice & Empowerment
This will cover the promotion of social justice and empowerment, the NGOs will receive fund from the Ministry of Social Justice & Empowerment Schemes.
Ministry of Tribal Affairs
This will covers the projects related to promotion of tribal affairs related projects by NGO. The NGOs will receive fund from the Ministry of Tribal Affairs under any Schemes associated.
Ministry of Women & Child Development
NGOs working for the development of women and child shall receive government monetary support from the Ministry of Women & Child Development Schemes.
National AIDS Control Organization (NACO)
Any scheme implementation related to National AIDS Control Organization (NACO) through NGOs will receive government aid.
As NGO is working towards social cause and for the furtherance of uplifting the society it is very important that there is continuous flow of the funds in the form of charities or contributions. Therefore, Government fund can be one such aid which will help the NGO in achieving its objectives.
Read our article:An Outlook: Registering an NGO in India