NGO Registration Process

Can an NGO run without registration?

No, NGOs cannot legally operate without registration. Registration is essential for legal recognition, access to foreign funding, and other activities such as opening bank accounts and applying for grants.

What are the Benefits of 12A Registration?

1. Income Tax Exemption: The core benefit of 12A registration involves the granting of income tax exemption. This implies that the NGO is exempt from paying income tax on the funds it accumulates from donations, grants, or other sources linked to its charitable endeavors. The funds saved through this exemption can be reinvested to expand the NGO’s initiatives, extend their outreach to more beneficiaries, and enhance the overall effectiveness of their programs.
2. The Attraction of Donors and Funding: 12A registration elevates the credibility and trustworthiness of an NGO in the eyes of potential donors and funding agencies. Donors exhibit a greater inclination to contribute to an NGO holding 12A registration, as it assures them that their contributions will be genuinely utilised for philanthropic pursuits. This heightened confidence can attract a larger donor base, enabling the NGO to secure increased financial backing for its projects.
3. Government Grants and Collaborations: Registered NGOs possessing 12A registration often become preferred partners for government agencies involved in executing social welfare programs and initiatives. Such registration opens avenues for collaborations with governmental entities, facilitating access to government grants and resources. Consequently, the NGO’s impact and reach can experience a substantial boost, as it gains access to supplementary support and funding opportunities.

Requirements for 12A Registration:

To be eligible for 12A registration, an NGO must meet specific requirements set forth by the Income Tax Department. The key requirements include:

1. Non-Profit Status: The NGO must function with a not-for-profit approach, dedicating its endeavours solely to charitable or philanthropic objectives. The objective should not involve generating profits for its stakeholders or members.
2. Registration with Government Authorities:  The NGO must legally register under appropriate laws, which might include the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a section 8 company according to the Companies Act, 2013.
3. Valid PAN Number: Holding a valid Permanent Account Number (PAN), issued by the Income Tax Department, is imperative for the NGO. PAN serves as a distinct identification number essential for all entities, including NGOs, concerning matters related to taxation.
4. Timely Filing of Annual Returns: The NGO should diligently file its annual returns with the relevant government bodies punctually and accurately. These submissions offer transparent insights into the NGO’s financial transactions and charitable undertakings.

Application Process for 12A Registration:

The following steps comprise the application process for 12A Registration:

1. Obtain Form 10A: Obtain Form 10A either from the Income Tax Department or by downloading it from the official website.
2. Complete Form 10A: Thoroughly complete Form 10A with accurate details, ensuring that all required documents are properly attached.
3. Submit the Application: Submit the filled application form, along with the necessary documents, to either the Income Tax Department or the designated authority.
4. Verification and Approval: The Income Tax Department will review the application and carry out essential verification procedures. Upon meeting all prerequisites, the NGO will receive approval for 12A registration, along with the issuance of a registration certificate.

What are the Benefits of 80G Registration?

1. 80G registration provides incentives for donors to contribute to registered NGOs, serving as a driving force for increased donations. Donors can claim tax deductions for the donated amount, thereby reducing their taxable income. This framework encourages both individuals and businesses to participate in social causes, with the assurance that their contributions will generate positive societal impacts while also yielding tax advantages.
2. Individual Donors are Drawn: Registered NGOs holding 80G certification are more likely to attract higher donations from individual contributors. The allure of tax deductions enhances the appeal and financial viability of donations for these individuals. This phenomenon substantially bolsters the NGO’s funding base, empowering them to undertake more expansive and influential initiatives.
3. Encouraging Corporate Social Responsibility (CSR) Contributions: Businesses adhering to Corporate Social Responsibility (CSR) mandates find donating to 80G-registered NGOs an attractive avenue. Such contributions not only fulfil their CSR commitments but also result in tax savings, rendering the donations more cost-effective and harmonious with their philanthropic objectives.

What are the Requirements for 80G Registration?

To avail of the benefits of 80G registration, NGOs need to fulfil specific requirements established by the Income Tax Department. The key requirements are as follows:

1. Valid 12A Registration: NGOs must possess 12A registration before applying for 80G registration. 80G registration builds upon the foundation of 12A registration, thus serving as a prerequisite for beneficiaries to access the tax advantages extended to contributors.
2. Compliant Financial Records: The NGO should uphold precise and transparent financial records, which encompass audited financial statements. These records serve to showcase the appropriate allocation of donations and adherence to tax regulations.

NGO Partners is a company that specializes in helping NGOs register for 80G. We have a team of experienced professionals who can help you through the entire process. We can help you with:

• Filling out the 80G registration form
• Gathering the required documents
• Submitting the form online
• Following up with the Income Tax Department