{"id":10595,"date":"2020-06-12T12:48:25","date_gmt":"2020-06-12T07:18:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=10595"},"modified":"2024-07-06T16:54:08","modified_gmt":"2024-07-06T11:24:08","slug":"how-ngo-works-obtain-12a-and-80g-certificate","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/","title":{"rendered":"Guide: How NGO Works &#038; obtain 12A and 80G Certificate?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Before starting an NGO and going for <em><a href=\"https:\/\/corpbiz.io\/ngo-registration\"><strong>NGO registration<\/strong><\/a><\/em>, you need to know <strong><em>how NGO works<\/em><\/strong>. NGOs endeavours to work on various causes, in the same way as administrations. Another feature associated with NGOs is that they have to look after resource management on their own. Even though they receive funds from the government, they enjoy the liberty of not having the influence of the government.&nbsp;&nbsp; <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#What_is_NGO_and_How_NGO_Works\" >What is NGO and How NGO Works?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#Types_of_NGOs\" >Types of NGOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#Benefits_of_NGOs\" >Benefits of NGOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#How_NGO_Works-_Financing_of_NGOs\" >How NGO Works- Financing of NGOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#Why_NGO_get_Exemptions\" >Why NGO get Exemptions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#Eligibility_Criteria_to_Acquire_12A_and_80G_Certificate\" >Eligibility Criteria to Acquire 12A and 80G\nCertificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-ngo-works-obtain-12a-and-80g-certificate\/#Wrap_Up\" >Wrap Up<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_NGO_and_How_NGO_Works\"><\/span>What is NGO and How NGO Works?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are various factors that\ndetermine how NGO works. An NGO is an independent entity in which institutions,\nas well as a group of people, join hands to work for the well-being along with\nexhilarating the lives of underprivileged people living in less developed\nsocieties. An ideal NGO is one that performs its charitable work without even\nthinking about profitability. NGOs can put their energy into various causes at\nthe same time, such as <strong><em>women empowerment, widow support, education\nfor necessitous ones, health check-ups, etc.<\/em><\/strong><\/p>\n\n\n\n<p>Non-governmental Organizations utilize the available resources in employing diverse forms of work. All this depends on the cause for which they have decided to work. Most of the NGOs keep their eyes on a <em><strong>local community<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Local_community\"><strong>[1]<\/strong><\/a><\/sup> serving underprivileged people living in poverty-stricken areas with making necessary resources available to them or by other means like spreading knowledge and advice. On the other side, several NGOs are there which dedicate themselves to the international arena and extend support on the ground outside the geographical boundaries. It would be better for NGOs to specify their extent of action. Furthermore, they need to deploy their human resources along with the material that they would have to carry out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_NGOs\"><\/span>Types of NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>There are two types of NGOs on the basis of activities they perform-<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"510\" height=\"287\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-78.png\" alt=\"Types of NGOs\" class=\"wp-image-10611\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-78.png 510w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-78-300x169.png 300w\" sizes=\"(max-width: 510px) 100vw, 510px\" \/><\/figure><\/div>\n\n\n<p>NGO&#8217;s of this category helps the\nsociety in transforming in a better manner by providing services like <strong><em>distribution\nof foodstuffs<\/em><\/strong> along with <strong><em>rendering healthcare support, free of cost\nclasses for economically backward ones, services related to relief work<\/em><\/strong>\nand more. These NGOs provide selfless service to the disadvantaged ones living\nin poverty-stricken zones. By starting an NGO in India or other developing\ncountries, you would turn out to be a valuable asset for mankind. NGOs are\nbeneficial for the nation, along with its citizens.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_NGOs\"><\/span>Benefits of NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NGOs come ahead for supporting grass roots initiatives as they help in sorting out the issues of poor and helpless individuals and societies. Sometimes, NGOs receive the support of the government, and even when they don&#8217;t get it, they keep on doing their job for the welfare of the <strong><em>necessities-deprived people.Now, take a look at the benefits of NGOs.<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"531\" height=\"276\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-79.png\" alt=\"Benefits of NGOs\" class=\"wp-image-10612\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-79.png 531w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-79-300x156.png 300w\" sizes=\"(max-width: 531px) 100vw, 531px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_NGO_Works-_Financing_of_NGOs\"><\/span>How NGO Works- Financing of NGOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>When you address about how NGO\nworks, you must understand how NGOs get financed. Financing of NGOs is possible\nin two ways- Private Funds and Public Funds.<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Private Funds<\/h3>\n\n\n\n<ul>\n<li>Many\npeople sharing their <strong><em>special interest for the common purpose <\/em><\/strong>of\nmaking a contribution to the betterment of the poor and actively participate in\nnoble deeds are financing these Non-governmental organizations. <\/li>\n\n\n\n<li>Raising\nof private funds would take place through <strong><em>periodic donations and conducting events<\/em><\/strong>\nthrough which required money for activities can get obtained. <\/li>\n\n\n\n<li>Contribution\nof private organizations can boost up the cause by making donations as per\ntheir wish.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Public Funds<\/h3>\n\n\n\n<ul>\n<li>A Non-governmental organization can make a request to both <strong><em>Local Administrations<\/em><\/strong> or <strong><em>Central<\/em><\/strong> or <strong><em>State Authorities<\/em><\/strong> for providing specific funds in case of the cause that requires huge funds. <\/li>\n\n\n\n<li>Non-profit making institutions receive <strong><em>grants or subsidies<\/em><\/strong> in the form of public funds to perform their activities. <\/li>\n\n\n\n<li>Various <strong><em>national<\/em><\/strong>, as well as <strong><em>international programs,<\/em><\/strong> are there to meet these public funds requirements.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/approach-ngo-registration-in-india\/\">How to approach NGO Registration in India? Forms &amp; Features<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_NGO_get_Exemptions\"><\/span>Why NGO get Exemptions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>NGOs get exemptions because of\nthe following reasons-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Since NGO fulfils all the required formalities\nafter going through the registration process, they get the tax exemptions.<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>NGO&#8217;s get tax exemptions as all the activities\nthey are engaged in is not for the profit motive and they are serving the\npeople living in marginalized communities as a charitable deed only. <\/li>\n<\/ul>\n\n\n\n<ul>\n<li>NGOs get the tax exemptions as all the\nactivities that they are performing on a regular basis are benefitting the\npublic.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_to_Acquire_12A_and_80G_Certificate\"><\/span>Eligibility Criteria to Acquire 12A and 80G\nCertificate <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The eligibility criteria that would help NGOs in acquiring <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration\"><strong>12A and 80G certificate<\/strong><\/a><\/em><strong><em> are- <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The formation of NGO must not take place with\nthe aid of a particular community, caste or religion. <\/li>\n\n\n\n<li>The utilization of income, as well as assets of\nthe Non-governmental organization, must be in case of <strong><em>charitable use<\/em><\/strong> only. <\/li>\n\n\n\n<li>The <strong><em>central goal<\/em><\/strong> of the non-profit\nmaking organization must be <strong><em>charity<\/em><\/strong>, and the overall income\nneeds to come from donations. <\/li>\n\n\n\n<li><strong><em>Proper maintenance of books<\/em><\/strong> of\naccounts comprising all receipts as well as expenditures is essential. <\/li>\n\n\n\n<li>The <strong><em>trustee<\/em><\/strong> of the NGO needs to maintain\nseparate books of accounts in order to make sure that the donations won&#8217;t get\ndiverted in the matter of NGO having a business income. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wrap_Up\"><\/span>Wrap Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you are spotting scope in <strong><em>starting an NGO in India<\/em><\/strong>, you must have the knowledge about <strong><em>how NGO works<\/em><\/strong>, how NGOs get financed as well as benefits of NGOs. Furthermore, if you want to enjoy the benefits concerning 12A and 80G certificate, you must follow up with the eligibility criteria. At <em><a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a><\/em>, our team would get immense pleasure in assisting you with <strong>NGO registration<\/strong>, guide you on how NGO works as well as help you in <strong><em>getting 12A and 80G certificate.<\/em><\/strong><\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-80g-registration-in-india\/\">A Detailed Guide For Obtaining 80G Registration\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before starting an NGO and going for NGO registration, you need to know how NGO works. NGOs endeavours to work on various causes, in the same way as administrations. Another feature associated with NGOs is that they have to look after resource management on their own. Even though they receive funds from the government, they [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":10601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[655],"acf":{"service_id":"407"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":6037,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10595"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=10595"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10595\/revisions"}],"predecessor-version":[{"id":65247,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10595\/revisions\/65247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/10601"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=10595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=10595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=10595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}