If you want to form and register NGO then you have to follow the process and the parameters and you have to arrange and manage the required resources and information:
- Identify the mission
- Decide the purpose of NGO that you want to form
- Decide the registered Office of your NGO
- Decide and analyze about the working and Operational area of NGO
- Decide under What Process you have to registered – Trust, Society or Non Profit Company
- Find-out or Research about the needs of beneficiary people and community you have to focused for.
- Decide the about the members or Trustees or Directors
- Form a General Body or Board of Trustees or Board of directors
- Form a Governing Body or Executive Body
- Choose a name for the organization
- List out Objectives of NGO
- Decide about your budget and financial capabilities
- Get the requirements from Registrar or take Consultancy to Register NGO
- Draft Bylaws including Objectives and Prepare Rules and Regulation of Trust Deed or Memorandum of Association or Articles of Association
- File Memorandum of Association with Rules & Regulations or Trust Deed or Articles of Association
- Develop a Strategic plan
- Develop and Finalize budget and financial plan to run and manage
- Appoint Staff
- Establish a record-keeping system for the organization’s official records
- Establish an accounting system
- File for Registration of Income tax exemption under 80G and 12A
- Organize meetings of General Body and Governing Body Regularly
- File Memorandum of Association with Rules & Regulations in Society Registrar office or Trust Deed in Sub Registrar Office or Articles of Association at ROC Registrar of Companies
Have to follow the steps for getting started
There are several steps to proceed to form and register your Non-Profit Organization. Creating proper procedures for the NGO you have to follow early on in the process helps to build a strong organization for future decision making. This includes clarifying roles, drafting bylaws, creating job descriptions, and providing proper orientation for new members as they come onto the NGO membership.
Identify the Mission
Every organization should have a written mission statement that expresses its reason for being. The mission statement doesn’t have to be elaborate. It can be stated in one succinct sentence — for instance, “Our mission is to improve the lives of adults in our community with low or no literacy skills.” You may also want to write a vision statement of how you see the community benefiting from the organization’s programs and services. The vision statement expresses the organization’s big dream and may say something like, “Our vision is for every adult in our community to be able to read and be fully employable.”
Research community needs
Look at the community and research your market. Are there other organizations meeting this same need? If so, would your organization provide something different from or duplicate their programs and services? You may want to look into the option of merging with a competing organization or developing a program that works in cooperation with or as part of an existing organization. Check with your local group or association of Non-Profit Organizations (if it is there) to find out about other similar organizations in similar service areas.
Request information and materials from Registrar office of from Consultant
Obtain the necessary required information and materials to incorporate Non-Profit Organization by contacting either the concerned Registrar of the competent and experienced Consultant like Chanakya Consultancy.
The incorporation package/resources/documents will vary from state to state in India, but should include some of the following information:
Material for Memorandum of Association with Rules and Regulations of Articles of Incorporation or Trust Deed check list form, corporation statutes specifying technical requirements for operating the Non-Governmental Organization, filing and processing fees and stamp papers, and instructions for registering your NGO name.
Form a General Body or Board of Trustees of Board of Directors
The founding General Body or Board will help transform the ideas behind the organization into reality through planning and fundraising. As the organization matures, the nature and composition of the NGO will also change. Early in the process, elect a president or chairman and Governing Body officials/executives like General Secretary/Secretary and Treasurer. If required according to the number of members/trustees, elect and appoint more designatories like Vice Chairman/Vice President, Joint Secretary, Organizing Secretary, Executive members etc. Have to identify the organization’s Chief executive and authorized signatory as a key person — the person who will run the day-to-day operations and monitor the management of NGO. Create descriptions of duties and responsibilities for all members to help in clarifying their roles. Determine your committee structure and appoint committee presidents.
Choose a name for the organization
Be thoughtful about selecting a name for your organization. The name you choose identifies who you are and what you do. Check with concerned Registrar office whether the names you are considering have already been registered in your registering area of the authority are submitting to register it. For Society and Non Profit Section 8 Company you have to check that the desired name is already registered or available for you to register the NGO. Once you have decided on a name, reserve that name while you proceed with the rest of your paperwork at the Registrar of Companies office. To register for Society when you apply and the file is proceeded then it can be approved to register the name for your Organization. Once the Memorandum with Rules and Regulation, Articles of Association or Trust Deed have been completed, further name protection can be obtained by the registrar office during the registration process. Who apply first are preferred to provide the desired name of the NGO where the name is applicable to decide.
Draft bylaws
Bylaws — the significant written rules by which an organization is governed — should be drafted and approved by the leading founder members early in the organization’s development. Bylaws should contain policies for term limits, committee structure, conflict of interest, membership, resignation and removal of members and directors, meeting attendance and notification, duties of members, indemnification of members, and the General Body or board’s procedures for conducting its order of Organization. Consult an consultant who is experienced in Non-Profit Registration related process, practice, rules, and law when you have to finalize your bylaws.
Prepare and file Memorandum with Rules and Regulation, Articles of Association or Trust Deed
Pay close attention to the filing requirements in the concerned registrar office for your Memorandum with Rules and Regulation or Articles of Association or Trust Deed . Improperly filed paperwork can result in the rejection of your registration process. The Memorandum with Rules and Regulation or Articles of Association or Trust Deed include the name of your organization, registered office address, the name and address of the members/directors/trustees, names of the officials/designatories of Governing Body/Executive Body, your statement of purpose, objectives, the duration of the membership provisions, and any additional required provisions. Need not to leave a room for flexibility if you consult with experienced consultant. Some times copy-paste Memorandum and Article of Association can result for changing your Memorandum with Rules and Regulation, Articles of Association or Trust Deed – unlike amending your bylaws — can be cumbersome.
Develop a future plan
To better serve the mission of the organization and be successful in fund-raising and recruiting management and staff, Non-Profit organizations need to develop a solid, strategic institutional plan. Strategic plans convey the vision, mission, and program goals of the organization; they can be certain time in scope and should be reviewed on an annual basis. The organization’s financial plan comes from the organization’s strategic plan. General Body/Board involvement in the strategic planning process helps renew commitment and enables Governing body/Board members to understand the staffing, fundraising, and program needs for the organization.
Develop a budget and financial plan
Financial oversight and resource development are critical responsibilities of NGO management. The budget and financial plan comes out of the strategic planning process and should support the program needs and objectives of the organization. The financial plan includes goals for fundraising, earned income, and membership. Experience and supportive NGO Consultant like team members of Chanakya can help and guide you better in this regard.
Establish a record-keeping system for the organization’s official records
Create a file to preserve your important corporate documents, including General body and Governing body meeting minutes, bylaws, Memorandum with Rules and Regulation or Articles of Association or Trust Deed , financial reports, and other official records. Contact your appropriate consultancy for more information and guidance on what records you are required to keep in the official files.
Establish an accounting system
It is exceedingly important for Governing Body members to put in place a system of controls when establishing the organization’s accounting practices. Non-Profit Organizations are accountable to the public, its funders, and, in some instances, Government granting and income governing authorities including Income Tax department and Home Ministry of Home Affairs in case of foreign funds through FCRA. Responsible stewardship of the organization’s finances requires the establishment of an accounting system that meets both current and anticipated needs. The organization needs to open a bank account and ascertain whether to use the accrual or cash method of accounting. The size of your organization will likely determine which method to choose, however, it is recommended in Generally Accepted Accounting Principles that for financial reporting, the accrual system should be used. If your General body or Governing body do not include someone with a financial or accounting background, consult with a certified Chartered accountant experienced in Nonprofit accounting.
File for an internal revenue service determination of tax-exempt status
On an ongoing basis, re-evaluate the Governing Body’s composition and role
As your organization grows and matures, so will the needs of its Governing Body/Executive Body. After the first year, take a look at the composition of the members of General Body and Governing Body and examine whether the addition of new talent could make a difference. Do you have contact with or know someone who is associated into the fundraising sector and can help bring in necessary funds? Would the addition of someone from a large corporation bring in a different perspective when your are deciding how to proceed with a for-profit business venture? At the same time, take a look at the role of the Governing Body/Executive Body and its governance and monitoring relationship to the organization. Have paid staff taken on some of the responsibilities that belonged to the concern of the Organization? How has the role of the Governing Body/Executive Body changed since its inception?
Approximately every year, it is important that the Governing Body/Executive Body should conduct a more thorough evaluation of itself. Self-Assessment for Nonprofit Governing Body/Boards is an evaluation tool specifically designed to help NGO to determine how well they are carrying out their responsibilities and where they need to make improvements. You may want to plan a self- assessment as part of an annual retreat of General body/Governing body or bring in a consultant to provide an objective evaluation of the NGO’s performance. Ongoing development and training can also be critical to the Governing Body/Executive Body’s overall performance. An annual retreat is an ideal time to focus on the development issues. A variety of team leaders’ development resources (books, videos, workshops, and customized training) are available to help the members better understand their roles and provide basic skills-building opportunities. Check with your local Non-Profit management groups or Non-Profit support center for workshops and NGO management consulting services that they provide.
Either you have to register or with the help of Consultant you can register and manage it.
Main role of Consultant is to prepare Bylaws and Memorandum— the significant written rules by which an organization is Governed — should be drafted by professional and experience person, so for this consultant is the best solution provider. You can contact us in this regard if you want to take help and consultancy.
After registration the Non-Profit Organization is run and manage like a for-profit business so you have to professionally manage and run your NGO as a social entrepreneur.