Non-Profit Organisation (NPO)

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Non-Profit Organisatoin’s (NPO) have played a crucial role in development of India. There are various NPOs that work all over India and for a wide range of causes. 

The World Bank defines NPO’s as “private organizations that pursue activities to 

relieve suffering, 
promote the interest of the poor, 
protect the environment, 
provide basic social services, or 
undertake community development.” 

NPOs do not work for profit motive and apart from own sources, NPO utilises funds raised through donations.

NPOs receiving foreign contributions in India come under the purview of Foreign Contribution Regulation Act, 2010 i.e. FCRA.

Corporate Social Responsibility (CSR) is practical way to give back to society and NPOs are the best way to do this.

NPOs can be registered in any of the applicable acts as mentioned below, according to the type of organisation chosen to be formed. Major laws and acts applicable to NPO are as follows –

Society registered under Societies Registration Act,
Central or respective State Acts
Public trusts under Indian Trust Act, 1882
Section 8 Companies registered under Companies Act,2013
NPOs for receiving foreign contribution are required to obtain registration under Section 6(1) of FCRA
NPOs for claiming various exemptions and benefits are required to obtain registration under Section 80G, 12A, 10(23) and 35(AC) of The Income Tax Act, 1961

Organisation type depends upon objectives, convenience, compliance and various other factors. 

Following are the areas in which we can play crucial role -
  • NPO formation including drafting of trust deed, bylaws, Memorandum of Association, Article of Association.
  • submitting forms and documents for registration with concern authorities
  • Annual and other compliance under respective act like filing of yearly financial statements, minutes drafting, maintenance of records and registers, etc.
  • Statutory audit under respective acts.
  • Registration and renewal under section 80G,12A,10(23) and 35(AC) of The Income Tax Act, 1961 for claiming various exemptions and benefits.
  • Preparation and filing income tax returns
  • Advise on determination, application and accumulation of income, corpus/ voluntary contribution, investment of funds, capital gain matters.
  • Prepare and submit the statement of donations (Form 10BD)
  • Audit under various sections of Income tax act.
  • Establish or review internal control, policies and procedures, develop internal checks and conduct internal audit.
  • Verification on behalf of donors or funding agencies to check whether grant terms and conditions are followed and investigative audit if suspects any fraud.
  • Registration, maintenance of accounts and records, filing of forms and annual return, renewal and intimations under FCRA
  • Project and fund planning, maintenance of records and reporting, filing of CSR-1 form. 





Comments

Unknown said…
Amazing write-up!
14 March 2023 at 23:00
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